Woman in her 70s collected welfare benefits while subletting public housing for W5.7m a month

A woman in her 70s who collected social security benefits while driving a luxury foreign car registered in her daughter's name has been referred to prosecutors. Investigators also found she had been illegally subletting a permanently subsidized apartment allocated to her, collecting 5.7 million won ($4,120) a month in rent.

The Jeonju Wansan Police Station in North Jeolla Province referred the woman, identified only as A, to prosecutors without detention Tuesday on charges of violating the National Basic Living Security Act and the Special Act on Public Housing, according to authorities Monday.

A is accused of driving a foreign-made sedan with an engine displacement of 2,000cc or more registered in her daughter's name from January 2023 to March this year without reporting it, and fraudulently receiving about 35 million won in social security benefits during that period.

Recipients of social security benefits must report to the relevant welfare authority if they own or regularly use a passenger vehicle with an engine displacement of 2,000cc or more.

A was also found to have been living at her child's home while illegally subletting the permanently subsidized apartment she had been allocated to a third party, collecting about 5.7 million won a month in rent.

Under the National Basic Living Security Act, anyone who fraudulently receives benefits through false or improper means may face up to one year in prison or a fine of up to 10 million won. They may also be required to repay all or part of the benefits they received.

Data submitted to Rep. Seo Young-seok of the Democratic Party of Korea, a member of the National Assembly's Health and Welfare Committee, by the Ministry of Health and Welfare showed that the total amount ordered recovered from fraudulent basic livelihood security recipients rose from 18.23 billion won in 2022 to 25.09 billion won in 2024.

The recovery amount refers to the total sum the government has determined must be returned after identifying cases where national basic livelihood security benefits — covering living expenses, medical care, housing, childbirth and funeral costs — were improperly paid out. Fraud typically involves failing to report increases in income or assets, or falsely splitting households to continue receiving benefits.