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Ministry of Employment and Labor Launches Crackdown on Unemployment Benefit Fraud with Rewards Up to 50 Million Won

The Ministry of Employment and Labor has announced a special reporting period for unemployment benefit fraud, offering amnesty for voluntary disclosures and rewards.

Ministry of Employment and Labor Launches Crackdown on Unemployment Benefit Fraud with Rewards Up to 50 Million Won
MTIMES Archive / Photo

Ministry of Employment and Labor to accept voluntary disclosures and public reports from the 9th through December 31st.

Voluntary reporting grants exemption from additional surcharges; special inspections on repeat recipients and overseas travel cases to be conducted.

The Ministry of Employment and Labor announced that it will operate a 'Special Reporting Period for Unemployment Insurance Fraud in the Second Half of 2026' from the 9th to December 31st. The scope of reporting covers all unemployment insurance programs, including unemployment benefits, maternity protection benefits such as parental leave benefits, and employment subsidies.

Individuals who voluntarily report fraudulent receipt before an investigation begins may be exempted from additional surcharges for unemployment and maternity protection benefits. For employment stability and vocational competency development programs, applicants may receive both a surcharge exemption and a reduction in the payment restriction period by up to one-third. However, cases involving collusion are excluded from these benefits, and those with a history of fraudulent receipt within the past three years may also face limitations.

Whistleblowers who report fraudulent activity will be eligible for a reward ranging from 20% to 30% of the recovered amount, based on the results of the investigation and recovery orders. For unemployment and maternity protection benefits, the maximum reward is 5 million won, while cases involving employer collusion in unemployment benefit fraud can yield up to 50 million won. Rewards for employment stability and vocational development programs are capped at 30 million won.

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During the same period, the Ministry will also conduct a 'Special Inspection on Unemployment Benefit Fraud for the Second Half of 2026.' Key targets include individuals who have received unemployment benefits three or more times from the same workplace and are suspected of false resignation reporting, as well as those who traveled abroad on unemployment recognition days and are suspected of proxy reporting. The Ministry clarified that it will not determine fraud based solely on repeat receipt or overseas travel, but will individually verify the circumstances of resignation and the application process.

Voluntary reports and tips can be submitted online via Work24 (work24.go.kr), the Ministry of Employment and Labor website, or the e-People portal. Submissions can also be made via visits, mail, fax, or telephone to local employment and labor offices.

Minister of Employment and Labor Kim Young-hoon stated, "While repeat receipt is an inevitable byproduct of the structural factors in our labor market, which has a high proportion of temporary workers, we will strengthen protections for vulnerable workers facing employment instability while responding strictly to those who abuse the system and fraudulently claim benefits."

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