Police Launch Special Crackdown on Fraudulent National Subsidy Claims... Reward for Reporting Up to 100 Million Won

Active Reporting and Submission Encouragement

The National Police Agency's National Investigation Headquarters announced on the 26th that it will conduct a special crackdown on fraudulent receipt of government subsidies until July 15.

According to the police, the number of cases of fraudulent receipt of government subsidies caught last year was 749, an increase of 16.8% compared to the previous year. Major cases include the Gwangju Police Agency apprehending 40 people who falsely applied for disability subsidies and embezzled about 2 billion KRW, and the Busan Police Agency uncovering 10 people, including a company representative who embezzled youth employment support subsidies worth 4.1 billion KRW and a public official who accepted a bribe of 60 million KRW.

This year, the National Police Agency will form a dedicated task force to eradicate fraudulent receipt of government subsidies, led by the head of the Investigation Bureau, and operate dedicated investigation teams at police headquarters and stations nationwide. In particular, the crackdown will focus on four major corrupt practices: ▲fraudulent applications and embezzlement of subsidies ▲providing preferential treatment related to subsidy support projects ▲collusion and corruption involving subsidy officials ▲misuse of subsidies and other subsidy operation irregularities.

Since subsidy projects are operated diversely by field and region, intelligence gathering is key to the crackdown, and to encourage reporting and tips, a reward of up to 100 million KRW will be paid. Regarding subsidy corruption, pre-prosecution seizure and confiscation will be considered to deprive and recover criminal proceeds. Additionally, a cooperative system with related agencies will be established to prevent recurrence of similar crimes exploiting institutional vulnerabilities.

The National Police Agency stated, “Fraudulent receipt of government subsidies damages public funds raised from taxpayers and threatens the soundness of national finances,” and added, “We will continue to thoroughly crack down on fraudulent receipt of government subsidies to ensure transparent execution of public funds and protect the national economy.”