Arrest of business owner who illegally received 64 million won in temporary payment in collusion with creditors
Business owner Mr. K (48 years old) was arrested on charges of colluding with creditors to submit false wage arrears complaints and then fraudulently collecting 64 million won in temporary payment funds and using them to pay off debts.
The Daegu West Branch of the Ministry of Employment and Labor (Branch Director Kim Seong-ho) announced on Thursday, September 12 that it had arrested business owner K on charges of violating the Wage Claim Security Act for planning in advance to pay off debts through a simple advance payment in collusion with creditors, and then fraudulently collecting 64.07 million won in advance payments by putting forward false workers with no actual work history as petitioners or disguising current workers as retired workers.
The suspect planned to fraudulently collect simple loan payments (formerly called simple loan payments) from the beginning, such as by writing the repayment plan as “replacement with debt consolidation” on the loan certificate when borrowing money from creditors. After fraudulently collecting simple loan payments worth 64.07 million won from 8 people, he remitted 49.38 million won of that to the creditors.
Even after the crime, the suspect submitted a wage arrears petition using false workers recruited by private loan sharks and creditors as the petitioners and attempted additional fraudulent collection of temporary worker allowances, showing a high possibility of repeat offenses. In addition, he was arrested due to concerns about destruction of evidence, such as submitting false documents by manipulating labor-related documents in order to deny the charges during the investigation.
Kim Seong-ho, the head of the Daegu Western District Office, emphasized, “The advance payment system is a system to support workers who are suffering from wage arrears. Crimes that abuse this system are very bad crimes that worsen the sound operation of the Wage Claim Guarantee Fund and return the damage entirely to the workers who have not been paid their wages.” He added, “In order to inform people of the gravity of the matter and raise social awareness, we will respond sternly with the principle of arrest and investigation for cases of intentional irregular receipt.”
Editor. Hong Se-yeong
