Recovered 129.6 Billion Won from Improper Public Fund Claims... Up 24% from Previous Year

Results of Implementation Review at 311 Agencies Announced
Recovered Funds Up 24% and Punitive Fines Up 74% Year-on-Year

Last year, 129.6 billion won was recovered as a result of identifying improper payments of public funds.

Anti-Corruption and Civil Rights Commission, Government Complex Sejong. Photo by Hyunmin Kim

The Anti-Corruption and Civil Rights Commission announced on August 7 that, after reviewing the implementation of the public fund recovery system in 2025 at 311 agencies—including central government ministries, local governments, and metropolitan and provincial offices of education—a total of 141,781 cases of improper receipt of public funds were detected. The public fund recovery system is a mechanism under which illicit gains obtained from fraudulent receipt of subsidies or compensation payments are reclaimed, and punitive administrative fines of up to five times the value of the fraud are imposed.

According to the inspection, 129.6 billion won was recovered in 2025 through these improper claims, and a total of 50 billion won in punitive administrative fines was imposed. The recovery amount increased by 24% compared to the previous year, while the amount of punitive administrative fines rose by 74% year-on-year. This trend is attributed to both the expansion of the total volume of public financial payments and a rise in the number of reports of fraudulent claims.

Major examples of fraud included: receiving agricultural direct payments without actual cultivation; illegally collecting single-parent family support by concealing marriage or de facto marriage status; receiving fuel subsidies by fueling non-eligible vehicles or continuing to claim subsidies after a business closure; and collecting national work-study scholarships through fake employment.

By category, the highest amount recovered was for basic livelihood benefits, totaling 29 billion won. This was followed by 22.9 billion won in financial support for the industrial, small and medium-sized business, and energy sectors, and 10.3 billion won for housing benefit payments. The largest year-on-year increase in recovered funds was in eco-friendly vehicle subsidies, which rose approximately 412% from 600 million won the previous year to 3.2 billion won. This result reflects both the expanded supply of electric and freight vehicles each year and stricter supervision by the relevant authorities.

By the scale of punitive fines imposed, the largest sum involved was for youth employment creation subsidies, totaling about 8.5 billion won. This was followed by 7.9 billion won for "clean workplace" subsidies, which support industrial accident prevention at small businesses.

By institution, local governments at the municipal and county (basic local) level recovered 66.7 billion won, accounting for 51.4% of the total recovered funds. Central government ministries imposed the highest amount of punitive administrative fines, totaling 32.9 billion won, or 65.7% of the overall total.

Lee Myungsoon, Vice Chairperson of the Anti-Corruption and Civil Rights Commission, stated, "Fraudulent receipt of public funds seriously undermines social fairness," adding, "We will strengthen the system in practical terms and strictly ensure transparency in the management of public finances."

This content was produced with the assistance of AI translation services.