Last year, 415 cases worth 3.9 billion won worth of illegal supplies were detected, but only 46% was recovered.

Last year, 415 cases worth 3.9 billion won worth of illegal supplies were detected, but only 46% was recovered.

(Dangjin = Yonhap News) Reporter Jeong Yun-deok = The amount repaid by the Korea Workers' Compensation and Welfare Service on behalf of workers who failed to repay their livelihood stability fund loans has increased significantly, but the recovery rate has been found to be minimal.

According to the analysis of data submitted by the Korea Workers' Compensation and Welfare Service by a member of the Climate, Energy, Environment and Labor Committee of the National Assembly on the 30th (Democratic Party of Korea, Dangjin, South Chungcheong Province), the livelihood stability funds subrogated by the Corporation last year amounted to 49.699 billion won.

This is a three-fold increase from 16.31 billion won in 2024.

If a worker is unable to repay a guaranteed loan, the Korea Workers' Compensation and Welfare Service pays the principal and interest to a financial institution on his or her behalf and then receives the money back from the worker.

However, the subrogation payment recovery rate was only 32.9% (KRW 494 million) in 2024 and 28.1% (KRW 5.757 billion) last year.

As of July this year, 29.12 billion won was subrogated and only 26.5%, or 4.269 billion won, was recovered.

Cases of detection of illegal supply are continuing.

It increased from 555 million won in 89 cases in 2024 to 3.964 billion won in 415 cases last year.

This year, 19 cases of illegal supply worth 192 million won were discovered.

The recovery rate of illegal benefits was only 47.2% in 2024, 46.0% last year, and 49.0% this year.

Rep. Eogyu said, "We must completely overhaul the review and recovery system to ensure that financial resources for vulnerable workers are not leaked through false applications and inadequate follow-up management. We must respond strictly to fraudulent supply and demand, and provide debt adjustment and credit recovery support to workers who have difficulty repaying at an early stage to solve the two tasks of soundness of the fund and support for recovery."