[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered social welfare facilities that committed illegal acts such as operating elderly welfare facilities without notification, colluding with relatives to collect usage fees from the elderly for several years, and falsely registering operators and their families as workers to embezzle subsidies.
The Gyeonggi Province Special Judicial Police for Fairness announced on the 27th that through a planned investigation of family-type and organizational corruption in social welfare facilities from January to March, they identified illegal activities at three social welfare facilities and four facility directors, and plan to send the case to the prosecution once the investigation is complete. The total amount embezzled or received as unjust gains from subsidies by these individuals reached 730 million KRW.
In a specific case, Mr. A, who operated an unregistered elderly welfare facility in Seongnam City, collected 520 million KRW in unjust gains over three years from January 2019 by charging 19 elderly users with mobility difficulties facility admission deposits, usage fees, and fees under the pretext of providing long-term elderly care services.
Mr. A appointed his son-in-law as the CEO of a corporation and his daughter as an auditor, while he himself took charge of practical management including admission consultations, recruitment, and user management. The deposit was up to 10 million KRW, and usage fees ranged from 500,000 KRW to 1.5 million KRW, generating 370 million KRW in revenue over three years.
Although unregistered facilities are prohibited from providing long-term elderly care benefits, they illegally provided long-term care services to the elderly and submitted false home care benefit applications as if home visit services were provided, unlawfully receiving 150 million KRW in government subsidies.
Mr. B, the director of a regional children's center in Icheon City, falsely registered his older sister and an employee's son as care workers and meal cooks from February 2018, embezzling 65 million KRW in social welfare subsidy wages from Icheon City. Mr. B also kept and managed the salary bank accounts of the falsely registered workers and personally conducted deposit and withdrawal transactions.
This planned investigation also confirmed cases of unauthorized disposal of basic assets of social welfare corporations, in addition to family-type corruption.
When disposing of basic assets of social welfare corporations, approval from the city or provincial governor is required according to the Social Welfare Services Act. However, the representative of social welfare corporation C located in Pyeongtaek City leased a building, which is a basic asset of the corporation, to a third party without prior approval from the governor, earning 150 million KRW in rental income.
Furthermore, the corporation's basic assets must be used according to the purpose of the project, but it was revealed that unauthorized changes of use were made by leasing the building as a religious goods store and residential space.
Violations of the Social Welfare Services Act are punishable by up to five years imprisonment or a fine of up to 50 million KRW.
Kim Young-soo, head of the Gyeonggi Province Special Judicial Police for Fairness, emphasized, "Corruption in social welfare facility subsidies and illegal operation of social welfare facilities must be eradicated," adding, "The Special Judicial Police for Fairness will strengthen investigations into subsidy corruption to ensure that subsidies for socially vulnerable groups are not wasted and that fair and sound welfare projects are carried out."
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