"Full Recovery of Partially Fraudulently Claimed Funds is Illegal"... Ulsan Buk-gu Office Suffers Final Defeat at Supreme Court
The Supreme Court has finalized a ruling that the Ulsan Buk-gu Office's disposition to recover subsidies in full, based on the partial fraudulent claiming of ex
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- The Supreme Court has finalized a ruling that the Ulsan Buk-gu Office's disposition to recover subsidies in full, based on the partial fraudulent claiming of ex

The Supreme Court has finalized a ruling that the Ulsan Buk-gu Office's disposition to recover subsidies in full, based on the partial fraudulent claiming of extended childcare fees by a daycare center teacher, was illegal. The court's decision means that it was unjust for the district office to enforce a full recovery without specifically proving the exact amount fraudulently claimed.
According to the Ulsan Buk-gu Office and the Heesu Nature School, an integrated disability daycare center, on the 1st, the case dates back to 2022. The incident began when it was discovered that a head teacher at the daycare center had falsely entered the departure times of some children for two months, fraudulently claiming a portion of the extended childcare fees. Even though the prosecution decided not to indict the teacher, the Buk-gu Office ordered the full return of the 2,039,000 won in subsidies paid during that period, imposed a penalty, and suspended the director's qualifications.
Director A filed a lawsuit in 2024 to cancel the 'subsidy recovery order and other dispositions,' arguing that recovering the subsidies in full, which included amounts for normally entered times, was excessive. Both the first and second trial courts ruled in favor of the daycare center. In particular, Administrative Division 1 of the Ulsan Branch of the Busan High Court stated, "If there was no way to specifically identify the falsely entered departure times, this is an issue of the district office failing to establish a proper proof system," ruling that the disposition deeming the entire subsidy as fraudulently claimed without accurate calculation was illegal. Subsequently, the Buk-gu Office appealed to the Supreme Court, arguing that the burden of proof lies with the party that caused the fraudulent act, but in April, the Supreme Court dismissed the district office's appeal, finalizing the plaintiff's victory.
Meanwhile, even after the ruling was finalized, conflicts over the return of funds continue. On this day, the Heesu Nature School held a press conference at the Buk-gu Office press room, claiming, "The district office is delaying the payment of subsidies and lawsuit costs, citing budget shortages." In response, the Buk-gu Office clarified, "We have already paid the unpaid subsidy of approximately 2.8 million won, and the penalty and subsidy return amount of around 12 million won are scheduled to be deposited tomorrow," adding, "The public daycare center subsidy of about 20 million won will be paid after securing the Ulsan metropolitan budget through a supplementary budget."