Incorrectly Paid Veterans’ Benefits Exceeded 10 Billion Won, but Only One-Fifth Recovered

[Financial News] Incorrectly paid veterans’ benefits exceeded 10 billion won over the past six years. Although more than 1.5 billion won was paid incorrectly due to administrative errors, the recovery rate for overpayments has remained in the 20% range for years.
According to data submitted by the Ministry of Patriots and Veterans Affairs (MPVA) to Song Eon-seok, a People Power Party lawmaker on the National Policy Committee, newly incurred overpayments of veterans’ benefits totaled 10.085 billion won from 2021 through August this year.
By year, the amounts were 3.514 billion won in 2021, 2.423 billion won in 2022, 1.52 billion won in 2023, 1.021 billion won in 2024, and 1.049 billion won last year. This year, 131 cases totaling 558 million won had occurred through August.
In particular, overpayments caused by administrative errors at the MPVA totaled 199 cases and 1.548 billion won during the same period. Last year’s figure was 253 million won, approximately 2.5 times higher than the 101 million won recorded the previous year. This year, 30 cases totaling 124 million won had occurred through August.
By type of administrative error, “payments made after the expiration of eligibility” accounted for the largest amount at 1.03 billion won. This was followed by “errors in determining payment amounts” at 389 million won and “other errors” at 129 million won.
The rate at which incorrectly paid funds were recovered was also low. The overall recovery rate for overpayments was 20.2% in 2021, 23.6% in 2022, 24.8% in 2023, 23.1% in 2024, and 21.4% last year, remaining in the 20% range each year.
This year was no exception. As of August, 787 million won had been collected out of the 3.637 billion won assessed for collection, putting the recovery rate at just 21.6%. Last year’s unpaid amount was 2.938 billion won, while write-offs for uncollectible amounts totaled 311 million won. The write-offs increased 2.2-fold from the previous year.
As the government raises veterans’ compensation and major allowances and expands eligibility for support, critics say it must also strengthen the systems for managing benefit payments and recovering overpayments.
Song said, “Incorrectly paid veterans’ benefits have exceeded 10 billion won in the past six years, while the recovery rate has remained in the 20% range for years. It is a serious problem that these issues are repeated every year without improvement.”
He added, “As support for veterans’ benefits expands, they must be managed thoroughly to prevent deficiencies. The entire management system must be strengthened to prevent administrative errors and fraudulent claims in advance and to ensure that overpayments are recovered promptly.”

[email protected] Kim Kyung-min Reporter