Daegu Labor Office Refers 59 Cases of Fraudulent Parental Leave Claims to Prosecution with Recommendation for Indictment... Ordered to Return Over 1.1 Billion Won

False Acquisition of Employment Insurance
Deceiving During Employment to Receive Benefits

The Daegu Regional Employment and Labor Office (Director Yoon Soo-kyung) announced on the 26th that it conducted a regular planned investigation into fraudulent claims for 2024 from April to the end of October.

This planned investigation targeted 120 recipients from small-scale workplaces where the proportion of recipients receiving parental leave benefits was relatively high.

Daegu Employment and Labor Office

According to the Daegu Labor Office investigation, 52 individuals were found to have fraudulently obtained employment insurance at workplaces run by acquaintances or relatives without actually working, thereby receiving parental leave benefits, or submitted false documents to fraudulently claim parental leave benefits despite being employed (self-employed). They were ordered to return approximately 1.12 billion KRW in fraudulent claims and additional collections.

During the investigation into fraudulent claims for parental leave benefits, additional employers who colluded in receiving employment incentives and unemployment benefits were identified. A total of 59 fraudulent claimants and colluding employers were referred to the Daegu District Prosecutors' Office with a 'prosecution opinion' for violations of the Employment Insurance Act.

Key cases include employer A, who, when facing difficulties operating the business, fraudulently claimed about 26 million KRW in employment incentives and maternity protection benefits by substituting unpaid wages to workers with parental leave benefits. Worker B fraudulently obtained employment insurance at a workplace run by relatives and received about 20 million KRW in maternity leave benefits.

In cases of fraudulent claims for employment incentives and maternity protection benefits, additional collections range from three to five times the amount fraudulently claimed. Separately, these offenses are considered serious crimes punishable by imprisonment of up to five years or fines up to 50 million KRW.

Yoon Soo-kyung, Director of the Daegu Regional Employment and Labor Office, stated, “With the recent expansion of maternity protection systems and increased use of parental leave, we will strictly deal with fraudulent claimants who abuse support programs.”