Ministry of Planning and Budget in Sejong Government Complex. [Photo=Ministry of Planning and Budget]
The government has resolved 827 billion won in unsettled and uncollected national subsidies over the past four months. It plans to enhance its management system for national subsidies by strengthening fraud prevention measures and developing the next-generation e-Nara Doome platform.
On June 17, the Ministry of Planning and Budget reported on the progress of its "Measures to Eradicate Fraudulent National Subsidies" during the sixth meeting of the Subsidy Management Committee, chaired by Vice Minister Lim Gi-geun.
The ministry has been addressing a total of 27 trillion won in unsettled and uncollected national subsidies this year. Of this amount, 827 billion won (30.9%) was resolved between February and May. The actual amount recovered for the national treasury was 520.5 billion won, which adds to existing non-tax revenue.
The government is also taking further steps to combat fraudulent claims for national subsidies. Following the establishment of a fraud reporting center in April, it created a subcommittee under the Subsidy Management Committee in May to strengthen governance and completed revisions to the integrated management guidelines for national subsidies.
Currently, the ministry is conducting the largest-ever field inspections of 13,240 subsidy projects in collaboration with the Financial Information Institute and relevant departments. These inspections are set to continue until the end of October.
Once the field inspections are completed, the ministry's subcommittee on fraud review and the fraud review committees of each department will take follow-up actions on identified fraudulent projects. Additionally, the government plans to amend the subsidy law to increase the upper limit for penalties related to fraudulent claims from five times the current refund amount to eight times in the second half of the year.
To encourage reporting of fraudulent claims, the government intends to revise the enforcement decree of the subsidy law by the end of September to expand the criteria for reward payments for whistleblowers.
Moreover, the government has begun a comprehensive overhaul of the e-Nara Doome subsidy management system. Launched in 2017, the system will be upgraded to a next-generation platform based on AI, cloud, and data to manage all national subsidies in an integrated manner.
The ministry aims to redesign work processes and establish a system by September this year, with a target launch date set for 2030.
Vice Minister Lim Gi-geun stated, "Fraudulent claims for national subsidies undermine the effectiveness of government policies and waste taxpayers' money. We will ensure thorough management of the entire process from detecting fraud to recovering funds and imposing penalties through coordinated field inspections and related systems."
He added, "We will diligently pursue the development of the next-generation e-Nara Doome to prevent unresolved and uncollected national subsidies and eliminate blind spots in monitoring fraudulent claims, thereby preventing leaks in national finances."
On June 17, the Ministry of Planning and Budget reported on the progress of its "Measures to Eradicate Fraudulent National Subsidies" during the sixth meeting of the Subsidy Management Committee, chaired by Vice Minister Lim Gi-geun.
The ministry has been addressing a total of 27 trillion won in unsettled and uncollected national subsidies this year. Of this amount, 827 billion won (30.9%) was resolved between February and May. The actual amount recovered for the national treasury was 520.5 billion won, which adds to existing non-tax revenue.
The government is also taking further steps to combat fraudulent claims for national subsidies. Following the establishment of a fraud reporting center in April, it created a subcommittee under the Subsidy Management Committee in May to strengthen governance and completed revisions to the integrated management guidelines for national subsidies.
Currently, the ministry is conducting the largest-ever field inspections of 13,240 subsidy projects in collaboration with the Financial Information Institute and relevant departments. These inspections are set to continue until the end of October.
Once the field inspections are completed, the ministry's subcommittee on fraud review and the fraud review committees of each department will take follow-up actions on identified fraudulent projects. Additionally, the government plans to amend the subsidy law to increase the upper limit for penalties related to fraudulent claims from five times the current refund amount to eight times in the second half of the year.
To encourage reporting of fraudulent claims, the government intends to revise the enforcement decree of the subsidy law by the end of September to expand the criteria for reward payments for whistleblowers.
Moreover, the government has begun a comprehensive overhaul of the e-Nara Doome subsidy management system. Launched in 2017, the system will be upgraded to a next-generation platform based on AI, cloud, and data to manage all national subsidies in an integrated manner.
The ministry aims to redesign work processes and establish a system by September this year, with a target launch date set for 2030.
Vice Minister Lim Gi-geun stated, "Fraudulent claims for national subsidies undermine the effectiveness of government policies and waste taxpayers' money. We will ensure thorough management of the entire process from detecting fraud to recovering funds and imposing penalties through coordinated field inspections and related systems."
He added, "We will diligently pursue the development of the next-generation e-Nara Doome to prevent unresolved and uncollected national subsidies and eliminate blind spots in monitoring fraudulent claims, thereby preventing leaks in national finances."
* This article has been translated by AI.
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