Ministry of Planning and Budget, Sejong Government Complex. [Photo=Ministry of Planning and Budget]
The South Korean government has resolved 827 billion won in unsettled and uncollected national subsidies over the past four months. The government plans to strengthen fraud prevention measures and enhance the management system for national subsidies, including the development of a 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.
This year, the ministry has been addressing a total of 27 trillion won in unsettled and uncollected national subsidies. Of this amount, 827 billion won (30.9%) was resolved between February and May. The actual amount recovered by the national treasury is 520.5 billion won, which represents additional resources secured beyond existing non-tax revenue.
The government is also taking further steps to eliminate fraudulent national subsidies. Following the establishment of a fraud reporting center in April, a subcommittee for reviewing subsidy fraud was created under the Subsidy Management Committee in May, completing revisions to the integrated management guidelines for national subsidies to strengthen governance.
Currently, the Ministry of Planning and Budget is conducting the largest-ever field inspections of 13,240 subsidy projects in collaboration with the Financial Information Service and relevant ministries. These inspections are set to continue until the end of October.
Once the field inspections are completed, the Ministry's subcommittee on fraud will conduct reviews and decisions on detected fraudulent projects. Additionally, the government plans to amend the Subsidy Act to raise the cap on penalties for fraud from five times the current return amount to eight times within the second half of the year.
To encourage reporting of fraud, the government intends to revise the enforcement decree of the Subsidy Act by the end of September to expand the criteria for reward payments for whistleblowers.
Furthermore, the government has initiated a comprehensive overhaul of the e-Nara Doome subsidy management system. After nine years since its launch in 2017, the system will transition to a next-generation platform based on AI, cloud, and data to manage all national subsidies in an integrated manner.
The Ministry plans to redesign work processes and establish a system by September, aiming for a launch in 2030.
Vice Minister Lim Gi-geun stated, "Fraudulent national subsidies undermine the effectiveness of government policies and waste taxpayers' precious money. We will ensure thorough management of the entire process from detecting fraud to recovering fraudulent amounts and imposing penalties through the linkage of field inspections and related systems."
He added, "We will diligently pursue the development of the next-generation e-Nara Doome to prevent issues related to unsettled and uncollected national subsidies and eliminate blind spots in monitoring fraudulent activities, 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.
This year, the ministry has been addressing a total of 27 trillion won in unsettled and uncollected national subsidies. Of this amount, 827 billion won (30.9%) was resolved between February and May. The actual amount recovered by the national treasury is 520.5 billion won, which represents additional resources secured beyond existing non-tax revenue.
The government is also taking further steps to eliminate fraudulent national subsidies. Following the establishment of a fraud reporting center in April, a subcommittee for reviewing subsidy fraud was created under the Subsidy Management Committee in May, completing revisions to the integrated management guidelines for national subsidies to strengthen governance.
Currently, the Ministry of Planning and Budget is conducting the largest-ever field inspections of 13,240 subsidy projects in collaboration with the Financial Information Service and relevant ministries. These inspections are set to continue until the end of October.
Once the field inspections are completed, the Ministry's subcommittee on fraud will conduct reviews and decisions on detected fraudulent projects. Additionally, the government plans to amend the Subsidy Act to raise the cap on penalties for fraud from five times the current return amount to eight times within the second half of the year.
To encourage reporting of fraud, the government intends to revise the enforcement decree of the Subsidy Act by the end of September to expand the criteria for reward payments for whistleblowers.
Furthermore, the government has initiated a comprehensive overhaul of the e-Nara Doome subsidy management system. After nine years since its launch in 2017, the system will transition to a next-generation platform based on AI, cloud, and data to manage all national subsidies in an integrated manner.
The Ministry plans to redesign work processes and establish a system by September, aiming for a launch in 2030.
Vice Minister Lim Gi-geun stated, "Fraudulent national subsidies undermine the effectiveness of government policies and waste taxpayers' precious money. We will ensure thorough management of the entire process from detecting fraud to recovering fraudulent amounts and imposing penalties through the linkage of field inspections and related systems."
He added, "We will diligently pursue the development of the next-generation e-Nara Doome to prevent issues related to unsettled and uncollected national subsidies and eliminate blind spots in monitoring fraudulent activities, thereby preventing leaks in national finances."
* This article has been translated by AI.
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