Labor ministry opens reporting window for unemployment benefit fraud

The labor ministry said Sunday it will run a reporting window for people to turn in themselves or others for fraudulently claiming employment insurance benefits, offering leniency to those who come forward before they are investigated.

The Ministry of Employment and Labor said the period runs from Nov. 9 to Dec. 31 and covers the full range of employment insurance programs — unemployment benefits, parental leave and other maternity protection payments, employment subsidies and vocational training support.

Those who report their own violations before an investigation begins, and who cooperate with the inquiry, will be exempt from the additional collection that is normally levied on top of repaying what they took. For employment stability and vocational training programs, the ministry can also cut the period during which a recipient is barred from claiming by up to a third, taking account of the scale, motive and consequences of the violation. People who took part in collusive schemes, or who have been penalized for benefit fraud in the past three years, are excluded.

Informants who tip off authorities can receive rewards worth 20 to 30 percent of the fraudulently claimed amount, based on how much is uncovered and ordered returned. The ceiling is 5 million won ($3,726) for unemployment benefits, rising to 50 million won ($37,258) where an employer colluded, 5 million won for maternity protection payments and 30 million won ($22,355) for employment stability and vocational training programs. Anonymous tips do not qualify for a payout.

Reports can be filed online through the employment portal work24.go.kr, the ministry's website or the national petition system, or in person, by post, fax or telephone at regional labor offices.

Alongside the reporting window, the ministry will conduct a special inspection of suspected unemployment benefit fraud, focusing on people who have claimed benefits three or more times at the same workplace and are suspected of filing false separation reports, and on people who left the country on days they were due to certify they were still unemployed.

Repeated claims or time spent abroad do not by themselves constitute fraud, the ministry said. Officials will check the circumstances of each job departure, who filed the certification and whether the claimant was actually looking for work before deciding whether benefits were improperly paid.

"Repeated claiming is in some ways an unavoidable consequence of the structural factors in our labor market, where temporary work accounts for a large share," Employment and Labor Minister Kim Young-hoon said. "Taking that into account, we will strengthen protection for vulnerable workers facing job insecurity, while responding more strictly to those who abuse the system and fraudulently claim support payments."