'Youth Job Support Fund Fraud' Convicted Individuals Fined 3 Million Won Each

[Asia Economy Reporter Hwang Seoyul] The court sentenced fines to the co-representatives of a company who falsely recorded the working hours and wages of young workers and fraudulently received tens of millions of won in youth job support funds from the Ministry of Employment and Labor.

According to the legal community on the 24th, Criminal Division 4 Judge Kim Dongjin sentenced Park (32) and Kim (32), who were charged with violating the Subsidy Management Act, to fines of 3 million won each on the 18th. The court stated, "Considering the nature and method of the defendants' crimes, the severity is not light, and the total amount of subsidies fraudulently received reached 20.9 million won, which is not a small amount," as the reason for sentencing.

However, the court added, "Taking into account the business difficulties spread throughout Korean society due to the COVID-19 pandemic, the defendants' compliance with the order to return the fraudulently received amount, and their faithful monthly installment payments of the imposed penalty of 104.5 million won, the sentence was determined."

Park and Kim, co-representatives of Company A located in Geumcheon-gu, Seoul, were indicted on charges of fraudulently receiving a total of 20.9 million won in business support funds from January to June last year by signing employment contracts with young workers as if they met the requirements for the Youth Digital Job Project support.

The Youth Digital Job Project is a program supported by the Ministry of Employment and Labor to promote the digital society and provide youth employment during economic crises. If the support requirements specified in the guidelines are met, a maximum of 1.8 million won in labor costs and 100,000 won in indirect labor costs per hired youth are provided.

Park and Kim hired two young workers on November 2020 and applied for business support funds to the Korea Foundation for International Cultural Exchange, which was entrusted with the project by the Ministry of Employment and Labor in December 2020 and January last year. However, both workers did not meet the working hours and wage conditions required for the subsidy, yet they submitted falsified wage payment documents and received 1.9 million won each from the Ministry in January and February last year, according to the investigation.

They showed meticulousness by receiving back the excessively paid wages from the young workers to appear as if they met the support conditions. It was found that the total amount of subsidies embezzled by Park and others using this method until June last year amounted to 20.9 million won.