Moon administration spent three trillion won for disaster relief

The Board of Audit and Inspection (BAI) said on Thursday that the Moon administration misused at least 3.23 trillion won out of disaster relief and loss compensation funds paid to small businesses following the COVID-19 pandemic, revealing that government cash was even given to voice phishing scammers and closed businesses recklessly. Added to this, 15,574 PV generators received 120.5 billion won, although not affected by the consequences of the pandemic.

According to an inspection report on support programs for small businesses released on Thursday, the previous administration paid a total of 61.4 trillion won of disaster relief funds to 5.86 million small- and medium-sized businesses and mom-and-pop stores seven times from July 2020 to September 2022. The inspectors concluded that no less than 3.23 trillion (5.3 percent) was granted to those disqualified; or excessively. The BAI ordered the Ministry of SMEs and Startups to report 312 recipients for deceiving authorities and receiving support unfairly.

According to the report, the former administration even gave 17.1 billion won to 1,705 online retailers, which recorded greater sales thanks to non-face-to-face transactions in the midst of the pandemic. For example, one of the wrong beneficiaries was granted over 10 million won, although its sales volume rose 17 times from 800 million won in 2019 to 13.2 billion won in 2022.

What’s more, a draft beer bar in Gwangjin-gu, Seoul received as much as 18.5 million won although it only suffered a decrease of sales by “two won” in 2021 compared to 2019. Similarly, a gas station operator got paid nine million won over the two years even after it reported business closure. Twenty-one shell companies involved in voice phishing and distribution of fake bankbooks received 80 million won as well.

A landlord of a building with a fitness club was granted an extra 15 million won even after the tenant running the gym already received disaster relief. The audit agency said a swimming pool owner wrongfully obtained support funds by registering not only as a swimming facility operator but also as a realtor.


고도예 기자 yea@donga.com