The government will investigate fraudulent receipt of subsidies paid out from the Employment Insurance Fund, including unemployment benefits, parental leave benefits, and employment incentives. If caught, it plans to additionally collect up to five times the amount of the subsidies.
The Ministry of Employment and Labor (MOEL) on the 1st stated accordingly its "Basic plan for investigating fraudulent receipt of employment insurance in 2026." It plans to carry out: ▲ a planned investigation (April–October) that identifies industries and types with frequent fraudulent receipt by region and uses that for inspections ▲ a special nationwide inspection (May–December) by program on types of fraudulent receipt involving unemployment benefits, maternity protection, and employment incentives.
If a fraudulent recipient is identified, the paid benefits and subsidies will be recovered, and up to five times the amount will be additionally collected. They may also face criminal penalties of up to three years in prison or fines of up to 30 million won.
Voluntary reporting may exempt the person from additional collection and criminal penalties. While guaranteeing confidentiality for those who report suspected fraudulent receipt, if the investigation finds it constitutes fraudulent receipt, reporters will receive a reward: for parental leave benefits and unemployment benefits, 20% of the fraudulent amount up to an annual cap of 5 million won; for fraudulent receipt related to employment stability and vocational competency development programs, 30% of the fraudulent amount up to an annual cap of 30 million won.
The ministry said it is receiving voluntary reports and tips on fraudulent receipt through Employment 24 and the National Petition System.