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A nursery school in the Gyeonggi area registered 0-year-old children and non-existent nursery teachers, and received a subsidy of around 16 million won last year. Government sponsored child care fees and child care staff subsidies, which receive 470,000 won per child, entered the director’s account.
Travel agency B in Seoul is being investigated by the police for deceiving an employee on his way to work as a leave of absence and receiving more than 100 million won in support of maintaining employment, which is a subsidy for permits. paid because of the novel. Coronavirus infection (Corona 19).
Since the inauguration of the Moon Jae-in government, the number of cases of illegal subsidies has increased rapidly. It has been criticized that the management of the subsidy business is not being carried out correctly amid the sharp increase in various cash subsidies.
3 cases of illegal supply and demand detected every two days
According to the Center for Welfare and Subsidies Reporting of the National Commission on Rights on the 26th, a suspicion was revealed among the number of complaints of fraudulent subsidies received last year, and 612 cases were transferred or sent to the relevant ministries. This means that 51 cases were detected per month and 3 cases every other day.
The number of fraudulent supply and demand incidents has increased rapidly since the inauguration of the Moon government. The number of arrests from 214 in 2016 increased to 234 in 2017, 492 in 2018 and 546 in 2019, and surpassed 600 for the first time last year. It increased 2.8 times in four years. Considering that the number of complaints received in this center by Corona 19 last year was 1,187 cases, 22.7% less than 1,536 cases in 2019, some point out that the actual cases of illegal supply and demand would have been much more than that. .
The significant increase in illegal supply and demand is due to the government’s large increase in subsidy budgets. The government subsidy, which was 59.6 trillion won in 2017, increased 64.2% to 96.9 trillion won based on this year’s budget. Considering that the fourth disaster aid payment is scheduled for next month, the grant is expected to exceed 100 trillion won. Welfare and employment subsidies are increasing significantly. Fraudulent supply and demand cases are interpreted to be increasing as well as many people rush to obtain subsidies, which are blind money.
Any individual or business ‘deviation’
The subsidies are divided into ‘payment type’, which pays subsidies to people who meet certain requirements, and ‘business type’, which subsidizes project expenses to improve people’s lives. However, it was found that cases of illegal subsidies are occurring in all directions regardless of this classification.
It was found that the four employees of Chungnam C Company continued to receive unemployment benefits equal to 16.1 million won even after they got a job. There was a problem with the subsidies paid. They planned meticulously, such as not subscribing to the four major insurances and not recording electronic journeys, but they got caught up in a field investigation. In addition, about 30 million won was collected, which is double the amount of illegal supplies. In June, it was revealed that more than 3,000 people, including public officials and teachers, received ’emergency livelihood funds’, which were paid to households with a median income of 100% or less, in addition to the emergency support fund. for government disasters.
There was also a gap in the trade subsidy given to manufacturers of exhaust gas reduction devices connected to diesel vehicles. According to the Korean Rights Commission, around 30 billion won of subsidies paid through this project from 2015 to last year amounted to around 30 billion won. It was found that the cost of each company was calculated up to double and the subsidy was excessive. The Kwon Ik Committee requested the Ministry of the Environment and the Ministry of Land, Infrastructure and Transportation to improve the related subsidiary projects.
Grant restructuring required
As cases of fraudulent subsidies continue to increase, views continue to be suggested that the management and restructuring of various subsidiary projects is necessary.
A typical example is that the Ministry of Strategy and Finance and the Institute of Taxes and Finance requested the adjustment of most of the projects in the extended evaluation of the government subsidy project last year. According to the 2020 National Treasury Grant Program Extended Evaluation Report, only 24 (10.0%) of the 241 grant projects subject to evaluation were evaluated as ‘normal promotion’. It was the first time last year that the normal promotion rate in the expanded evaluation of the government subsidy project fell to 10%. After registering 51.0% in 2015, when the total grant project from the national treasury was carried out, the downward trend continues, including 39.2% in 2018 and 34.5% in 2019.
This results in the need to re-examine the entire grant project. In response, Jin-wook Choi, professor of public administration at Korea University, who is head of the National Treasury Assistance Project Evaluation Division, said, “I asked the government to do a strong restructuring of spending.
The Kwon Ik Committee announced that it is preventing the illegal provision of subsidies by operating the ‘intensive reporting period for illegal subsidies’ every year. Depending on the level of contribution to the reporter, compensation of up to 3 billion won or up to 200 million won is paid.
Reporter Kang Jin-kyu [email protected]
