Government's Bold Move Against Subsidy Misuse: What You Need to Know

Written by Hye Gi Rim Lee | 2026.03.10

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 News1 Lim Se-young Reporter
 News1 Lim Se-young Reporter

Prime Minister Kim Min-seok said on the 10th that the government will continue to strengthen the subsidy management system and will respond firmly and strictly to fraudulent claims.

At an interministerial meeting at the Government Complex Seoul that afternoon, Kim told attendees that subsidies are a valuable fiscal program funded by taxpayers' money.

He said only careful oversight and cooperation from each ministry can keep the system functioning. Recent inspections, however, have repeatedly uncovered cases in which corporate-style subsidy brokers intervened or subsidies were diverted for private use as if they were personal assets.

He added that illegally claiming or privately using national subsidies is more than a simple budgetary waste — it is a crime that undermines the foundation of government finance. Taxpayers' money must be used efficiently where it is needed.

Kim announced the government will launch the largest-ever joint, across-ministry inspection this year. He said the review will go beyond a simple status check: the government will investigate thoroughly and take decisive action against any misconduct discovered.

Noting that subsidy budgets have been expanding, he said management must move beyond past methods. \"We need tight oversight across the entire process — from project selection to execution and inspection,\" he said.

He said the day's meeting would discuss fundamental management measures to root out fraudulent claims. Rather than rely on passive, after-the-fact detection, the government must create structural safeguards that leave no room for fraud.

He said the administration will broadly consider a range of improvements to eliminate fraud, including strengthening inspection systems and expanding rewards for whistleblowers.

Kim expressed hope this effort will mark a turning point in restoring public trust in subsidies and improving transparency in fiscal management. He urged each ministry head, as the official responsible for the full execution process, to personally verify that subsidies are being used properly and achieving their intended policy goals, and to ensure that no fraudulent claims occur at either the central or local government level.