Sangju City Launches Subsidy Inspection Network to Prevent Tax Leakage... Closing Gaps with Audit Casebook

Improper Use, Delayed Settlement, and Labor Cost Issues
Organizing Recurring Cases to Strengthen a Prevention-Oriented Management System

Sangju City has begun sharing audit case studies to proactively prevent the fraudulent receipt of local subsidies and enhance transparency in their execution. The city aims to overhaul recurring improper practices with a focus on prevention, accelerating efforts to establish a “subsidy administration where tax money does not leak.”

Photo by Kwon Byunggeon, Sangju City Hall

Sangju City announced that it has produced and distributed the “2025 Subsidy Education and Audit Casebook” to ensure responsible execution of local subsidies, and has started to use it to strengthen subsidy management capabilities.

This casebook organizes the entire subsidy process step by step, focusing on cases that were commonly pointed out in recent internal audits by Sangju City and audits of other local governments.

It systematically covers improper cases and improvement measures that may occur at each stage-from pre-disbursement procedures and execution standards to settlement and post-management-thereby enhancing practical field utility.

In particular, the casebook concentrates on issues frequently cited during audits, such as ▲ use of subsidies for purposes other than intended ▲ delayed submission of settlement reports ▲ improper execution of instructor fees and labor costs ▲ non-compliance with the Local Contract Act, among others.

It presents key points that both subsidy management officials and project operators must be aware of, using real-world examples so that they can be immediately applied in practice.

Based on the casebook, the city plans to ensure that those in charge have a more precise understanding of relevant laws and execution standards. From the early stages of project implementation, the city will strengthen pre-inspections, guidance, and supervision to fundamentally block the possibility of fraudulent claims. The goal is to establish a management system focused on prevention, rather than simply detecting issues after the fact.

Kang Youngseok, Mayor of Sangju City, stated, “Since subsidies are operated with citizens’ valuable tax money, thorough management and responsible operation throughout the entire execution process are of utmost importance. By sharing these case studies, we will further enhance the transparency of subsidy execution and realize trustworthy administration.”