In the future, if a local subsidy is falsely requested and received or is received illegally, the same level of penalty as that of the national subsidy will be imposed, and a penalty surcharge will be collected up to five times. 

The Ministry of the Interior and Safety (Minister Jeon Jeon Jeon) announced at the Cabinet Meeting on July 6 (Tuesday) that the enactment of the 「Local Government Subsidy Management Act (hereinafter referred to as the “Local Subsidy Act”) Enforcement Decree was approved.

This Enforcement Decree was prepared to stipulate the matters necessary for implementation as the 「Local Government Subsidy Management Act」 was enacted (‘21.1.12), and it will come into effect from July 13th along with the Local Subsidy Act.

The Local Subsidy Act is a law that regulates the overall management of subsidies paid by local governments to corporations, organizations, or individuals. Also 

However, with the enactment of the Local Subsidy Act and the Enforcement Decree of the Local Subsidy Act, it is expected that the local subsidy management will be systematized by local governments and will contribute to eradicating illegal supply and demand.

The local subsidy law enacted this time contains contents such as ▴reinforcement of the local subsidy management system, ▴prevention of illegal receipt of local subsidies, and ▴strengthening sanctions on illegal beneficiaries of local subsidies. 

First, in order to strengthen the local subsidy management system of local governments, the legal basis for establishing the 'integrated local subsidy management system' is prepared and all processes of local subsidy organization, public offering, issuance, execution, and settlement are electronic.

With the enactment of the Local Subsidy Act and Enforcement Decree, it becomes possible to systematically manage local subsidy budgets, issuance procedures, and history management, which were entrusted to the existing regulations of the Ministry of Public Administration and Security and local government ordinances. 

In addition, for local subsidy projects of 300 million won or more, the settlement report must be verified by an accounting firm, etc., and an audit is mandatory for sub-businesses that have been issued local subsidies of 1 billion won or more for one year to prevent illegal receipt of local subsidies. 

In addition, for important properties that are acquired through local subsidies or whose utility increases, the current status is disclosed on the website of the local government, and bookkeeping registration is mandatory for real estate so that it cannot be arbitrarily disposed of during the period determined by the head of the local government.

Lastly, a person who receives a local subsidy in a false or fraudulent way by collecting a penalty surcharge within 5 times the total amount of local subsidy to be returned by an illegal recipient and raising the penalty for illegal receipt to the level of the state subsidy shall be punished by imprisonment for not more than 10 years or A fine of not more than 1 million won is imposed.

Jeon Je-cheol, Minister of the Interior and Safety, said, “With the enactment of the Local Subsidy Act, we expect to increase the transparency and reliability of the local government’s finances. We will work with you,” he said.

Reporter Sangmin Kim ( handuru@naver.com )