Kindergarten in Gongju Paid Staff Vacation Allowances Using Government Subsidies

9.9 Million Won in Subsidies Illegally Paid as Special Bonuses to 12 Kindergarten Staff Members

Chungnam Provincial Office of Education Building View

It has been revealed that government subsidies provided to expand free education were misused at a kindergarten located in Gongju, Chungnam Province, being spent inappropriately as bonuses and vacation allowances for staff members.

According to an investigation by Asia Economy on April 21, a comprehensive audit conducted by the Chungnam Provincial Office of Education in February found that Kindergarten A illegally disbursed 9.9 million won in subsidies, intended for early childhood education, as special bonuses to 12 staff members.

Kindergarten A paid some staff members up to 2 million won each, citing occasions such as the school's anniversary and COVID-19 response as reasons for the payments.

These subsidies are government funds designated for supporting kindergarten tuition and improving teachers' working conditions, and cannot be used for other purposes under the "Private Kindergarten Accounting Guidelines" and the "Financial Operations Manual."

However, the kindergarten violated accounting regulations by diverting the budget for internal rewards and summer vacation allowances.

In addition, it was found that the basic salary subsidies paid to the principal and vice principal, which are taxable under the Income Tax Act, were not reported, resulting in underpayment of taxes.

Furthermore, due to amendments to the Labor Standards Act, a "workplace bullying prevention clause" was required to be included in the workplace rules, but it was neglected and not reflected for several years.

The Provincial Office of Education has ordered the full recovery of the 9.9 million won subsidy from the kindergarten and issued warnings to two individuals involved.