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Business owner who forged documents to receive and give parental leave benefits referred to prosecutors

Published: 25 Nov. 2025, 13:12

An image of a statue of Justitia, the Roman goddess of justice [KOREA JOONGANG DAILY]

A business owner who, alongside his acquaintances, allegedly lied about his company's payroll to fraudulently receive parental leave benefits has been referred to prosecutors.

The Gyeonggi office of the Ministry of Employment and Labor said on Monday that it handed over a man and three others on Nov. 5 — without detention — on charges of violating the Employment Insurance Act.

The man is accused of illegally obtaining a total of 100 million won ($68,000) from the ministry between August 2023 and July this year.

He allegedly pretended to employ two acquaintances and submitted fabricated parental leave certificates on their behalf. The man received childbirth and parenting-related employment stability subsidies, and one of his acquaintances fraudulently collected both maternity leave and parental leave benefits.

The Gyeonggi office said it uncovered around 10 cases — including the man's — totaling 250 million won in fraudulent payments during a six-month special probe, conducted from April to October, into employment insurance fraud.

Labor authorities have ordered those caught to return the 250 million won and an additional penalty equal to 20 percent of the illegally received amount for a combined total of more than 400 million won.

The Gyeonggi office is encouraging people to report themselves or others for employment insurance fraud from Nov. 3 to Dec. 2.

“Those who voluntarily report themselves [...] may be exempt from additional penalty charges and could receive reduced criminal punishment,” said an official at the Gyeonggi office. The official added that informants will also be eligible for a reward.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HYEON YE-SEUL [[email protected]]