Two Years Since the Launch of the National Fiscal Crime Joint Investigation Unit... 136 People Booked as Results

Cooperation Among Prosecutors, National Tax Service, and Related Agencies
Uncovering 122.2 Billion KRW in National Financial Damage
Detection of Fraudulent Loans and Subsidy Embezzlement

The Joint Investigation Unit for National Fiscal Crimes of the Seoul Northern District Prosecutors' Office has achieved the result of indicting 136 financial crime suspects who caused damage to the national treasury within two years of its launch.

On the 29th, the Joint Investigation Unit announced that over the past two years, it had indicted 136 financial crime suspects who caused damage worth approximately 122.2 billion KRW to the national treasury, and among them, 8 were arrested and prosecuted.

Seoul Northern District Prosecutors' Office.

The Joint Investigation Unit is composed of about 30 experts from related agencies including the prosecution, National Tax Service, Korea Customs Service, Financial Supervisory Service, and Korea Deposit Insurance Corporation. Since its launch in 2022, it has been investigating cases such as tax evasion, overseas concealment of assets, and various fraudulent subsidy claims.

A representative investigation case of the Joint Investigation Unit is the embezzlement of solar power financial support loans. In February last year, the unit arrested and prosecuted three construction company representatives who inflated the construction costs of solar power facilities and obtained loans amounting to 55.7 billion KRW. Additionally, they achieved results by bringing to trial two loan officers from financial institutions who colluded with the construction company representatives to approve excessive loans, as well as 16 brokers and power generation operators who embezzled loan funds under the pretext of construction costs.

During the investigation, it was also uncovered that former high-ranking officials in Taean County, Chungnam Province, received illicit employment opportunities from the project implementing company.

In May last year, five individuals who participated in the government's artificial intelligence (AI) training data construction project and fraudulently embezzled national subsidies were prosecuted. Six employees who were falsely hired and fraudulently received unemployment benefits were also brought to trial. A related official from the Korea Intelligent Information Society Agency, who received bribery money for project selection from these individuals, was also prosecuted.

Furthermore, the Joint Investigation Unit arrested and prosecuted the owner of a listed company who created 6.1 billion KRW of overseas slush funds by sending money to a paper company under the pretext of trade payments.

As the amount of national treasury subsidies increases every year, the Joint Investigation Unit plans to continue strictly responding to money laundering crimes. The amount of national subsidies, which was about 78 trillion KRW in 2019, significantly increased to about 102 trillion KRW last year.

A representative of the Joint Investigation Unit stated, "Tax and fiscal crimes are becoming increasingly sophisticated," and added, "We will strive to establish the awareness that those who commit national fiscal corruption will inevitably be punished through organic cooperation with related agencies."