South Korea's Ministry of Health and Welfare has announced strengthened measures to combat fraud in social service electronic vouchers. Last year, detected fraudulent claims reached 47.88 billion won (approximately $35.7 million), a 6.5-fold increase from 2021. The most common scheme involved providers holding users' cards and processing unauthorized payments, accounting for 14.61 billion won (approximately $10.9 million). The government plans to develop a location-matching system by the end of 2027 that verifies whether users and service providers are in the same place. Sanctions will also be tightened, allowing business license revocation after just two instances of false claims. Penalty surcharges will be raised to up to five times the fraudulent amount, alongside AI-based detection system upgrades and enhanced information sharing with local governments.
South Korea's government is introducing a location-matching system at the payment stage to prevent fraud in social service electronic vouchers, while significantly raising penalties to allow business license revocation for providers caught submitting false claims twice.
The Ministry of Health and Welfare announced the "Social Service Electronic Voucher Fraud Management Reinforcement Plan" on the 16th. Electronic vouchers are a government subsidy program covering care and rehabilitation costs such as disability activity support and developmental rehabilitation. Under the system, users pay with issued cards, and service...
South Korea's Ministry of Health and Welfare has announced strengthened measures to combat fraud in social service electronic vouchers. Last year, detected fraudulent claims reached 47.88 billion w...