The CEO and other executives of Company A, an electric vehicle (EV) charging station installation firm, have been indicted for using government subsidies intended for charging station installation to pay off company debts, insurance premiums, and personal expenses such as congratulatory and condolence money.
The Joint Investigation Team for National Fiscal Crimes at the Seoul Northern District Prosecutors Office announced today (June 29) that it has indicted the corporation of Company A, its CEO, and its finance executive without detention on charges including violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (embezzlement) and violation of the Subsidy Management Act.
They are accused of arbitrarily using approximately 6.5 billion won to pay off loans between July and September 2023, after receiving 24.4 billion won in subsidies from the Korea Environment Corporation for the "Regional Zero-Emission Vehicle Transition Brand Project."
They are also accused of spending approximately 1.9 billion won over 1,333 separate transactions during a five-month period starting in July of the same year to cover loan interest, taxes, fines, insurance premiums, and personal expenses for weddings and funerals.
The Seoul Northern District Prosecutors Office launched the investigation after receiving a request from the Government Joint Anti-Corruption Promotion Team under the Office for Government Policy Coordination last September.
Prosecutors explained that they uncovered the crimes after months of investigation, which included searching the company's offices, conducting digital forensics to secure evidence, and tracking funds across 66 bank accounts.
The investigation revealed that Company A had indiscriminately applied for and received subsidies in 2023 without considering factors such as local government permits or the feasibility of electricity supply, and used the funds to repay loans taken out for the previous year's projects or for personal expenses.
The prosecution added, "The combination of the subsidy recipient's lack of awareness regarding the proper use of funds and lax management allowed the subsidies to be treated as 'blind money' (easy money). We will continue to respond sternly to all types of national fiscal crimes in accordance with the law and principles."
(Photo: Yonhap News TV, Yonhap News)