Gyeonggi Province Special Investigation Detects 1.3 Billion Won in Illegal Fuel Subsidy Claims by Cargo Truck Owners

[Suwon Ilbo=Reporter Park No-hun] Cargo truck owners who illegally claimed approximately 1.3 billion won in fuel subsidies through various fraudulent methods—including making false payments without actual refueling in collusion with gas station operators—have been detected in large numbers by Gyeonggi Province investigations.

Kim Young-soo, head of the Gyeonggi Province Special Investigation Unit for Fair Trading, held a press conference at the Gyeonggi Province Government Building on the 15th and announced, "To eliminate illegal fuel subsidy claims for cargo vehicles, we conducted investigations by obtaining gas station point-of-sale (POS) transaction data targeting cargo truck owners. As a result, we detected 345 cargo truck owners who illegally claimed 1.3 billion won in fuel subsidies and 30 gas station operators who conspired with them."

The fuel subsidy for cargo vehicles is a system in which the government provides subsidies equivalent to a portion of increased fuel taxes, beginning in June 2001 when the government restructured energy tax policy and raised fuel taxes. It was introduced to alleviate the burden on the cargo industry, with a subsidy rate of 345.54 won per liter of diesel.

From February to November this year, the Special Investigation Unit detected a total of 375 violators through comparisons between the Ministry of Land, Infrastructure and Transport's Fuel Subsidy Management System (FSMS) and gas station POS systems, as well as on-site inspections of 2,447 gas stations in the province. Of these, 219 were referred to prosecution and 156 were placed under criminal investigation.

Violations included: ▲212 cases of inflated credit transaction amounts with false bulk/fraudulent payments ▲72 cases of refueling personal vehicles and other vehicles ▲23 cases of card cashing following false payments ▲8 cases of card lending and entrusted fraudulent payments ▲30 cases of fuel additive and convenience store purchases ▲30 cases of aiding and abetting gas station operator subsidy fraud.

Looking at key cases, cargo truck owner A conspired with a gas station operator to receive fuel subsidies of 27 million won illegally by not paying at each refueling but instead creating credit slips and making lump-sum payments later, or by not actually refueling or inflating the amount refueled and making false payments.

212 cargo truck owners were detected using this false payment method, and the fuel subsidies they illegally obtained totaled 903 million won.

Cargo truck owners B and 71 others conspired with gas station operators to refuel personal passenger vehicles or inflate the refueled amount through card payment, then divert the difference to refuel personal passenger vehicles and other vehicles, illegally claiming 142 million won in fuel subsidies.

There were also cases where individuals used multiple containers at self-service gas stations to refuel an amount corresponding to large cargo vehicles, then refueled personal vehicles—a method designed to evade illegal subsidy detection.

Additionally, cargo truck owner C and 22 others conspired with gas station operators to make false card payments for amounts not actually refueled or inflated beyond the actual refueling amount for cargo vehicles, then received the difference in cash from the gas station—a practice known as "card cashing"—illegally claiming 134 million won in fuel subsidies and were caught.

Other cases involved lending cards to other truck owners or depositing them at gas stations to refuel personal passenger vehicles and non-commercial cargo vehicles, using mobile petroleum sales vehicles (homelories) to refuel, purchase fuel additives, urea solution, and convenience store items, then using fuel purchase cards for payment to illegally obtain fuel subsidies.

This investigation focused not only on cargo truck owners but also on enforcement against gas station operators who conspired with and participated in illegal subsidy claims.

As a result, gas station operator D and 29 others were charged with aiding and abetting cargo truck owners' illegal fuel subsidy claims through various methods including inflated credit transactions with false payments, card cashing, refueling personal vehicles and other vehicles, and false card deposit payments.

According to Article 68 of the current "Cargo Vehicle Transportation Business Act," anyone who receives fuel subsidies for cargo vehicles through false or fraudulent means is subject to imprisonment of up to one year or a fine of up to 10 million won.

The province plans to refer the cargo truck owners and gas station operators detected in this case to prosecution and will implement measures to suspend fuel subsidy payments for 6 months to 1 year and recover fuel subsidies by each local government agency.

Additionally, the province plans to recommend amendments to relevant regulations to the Ministry of Land, Infrastructure and Transport to require gas station operators to submit point-of-sale system (POS) information to the competent authorities to preempt illegal subsidy claims.

Kim Young-soo, head of the Gyeonggi Province Special Investigation Unit for Fair Trading, stated, "Taking fairness—a core value of the 7th popularly elected provincial administration—as our banner, we will strengthen investigations into illegal fuel subsidy claims to concentrate investigative resources so that illegal subsidy claims can be eliminated and national treasury fraud can be eradicated."