Summary of the Employment Security Fund Scandal
This scandal centers on the Ministry of Labor and its subordinate agencies, particularly allegations of misuse of the Employment Security Fund. According to the National Audit Office, between 2020 and 2024, over NT$72.24 million was spent in ways that were not directly aligned with the fund’s legally designated purposes — and should be reclaimed.
Specific allegations include:
- Then-Minister of Labor Hsu Ming-chun allegedly used the fund to organize a concert in which she performed, and paid for a professional glamour photo shoot using public money.
- The Ministry of Labor reportedly spent large amounts producing promotional videos and running YouTube ads, with questionable impact or effectiveness.
- Former Director of the Ministry’s Northern Branch, Hsieh Yi-jung, is accused of using funds to renovate her office and buy gifts for personal public relations purposes.
Legislator Huang Kuo-chang has closely followed the case, criticizing the Ministry of Labor for failing to take concrete action to recover the misused funds. He also pointed out that the ministry intends to cover the fund’s deficit using future general budgets — essentially making taxpayers bear the cost.
The National Audit Office has pledged to reclaim the misspent funds and may refer related cases to judicial authorities for further investigation.
Public dissatisfaction is growing, with many believing the fund should be used to promote employment and protect workers’ rights — not to finance the personal expenditures of government officials.
Timeline
On average, about NT$14.5 million is misused per year
According to investigations by the National Audit Office, between 2020 and 2024, up to NT$72.24 million in expenditures from the Employment Security Fund were found to be inconsistent with the fund’s intended purposes and legal usage. Legislator Huang Kuo-chang noted that, on average, approximately NT$14.5 million per year was misused under the Democratic Progressive Party (DPP) administration.
2020 ~ 2024The Ministry of Labor spent several million New Taiwan dollars to organize the concert “Salute! Keep Shining – 20th Anniversary of the Gender Equality in Employment Act,” during which then-Minister Hsu Ming-chun performed on stage. The National Audit Office later determined that this event did not align with the fund’s intended use.
Former Minister Hsu Ming-chun was also accused of using public funds to pay for professional photographs used on her personal social media accounts. These expenses were covered by the Employment Security Fund.
The Ministry of Labor reportedly spent NT$90,000 on a press conference held in a basic meeting room, prompting Legislator Huang Kuo-chang to question the appropriateness of the expenditure.
The Employment Security Fund was used for the management and marketing of the Ministry’s Facebook page, the production and distribution of Lunar New Year couplets and red envelopes, ministerial gift boxes, and associated design costs.
Taiwan Television Technology Co., Ltd. produced an 8-minute promotional video for the Ministry of Labor. The production cost NT$10 million, yet the video received only 130,000 views on YouTube. Legislator Huang criticized the cost-effectiveness of this expenditure.
Legislator Huang Kuo-chang questioned the Minister of Labor at a session of the Social Welfare and Environmental Hygiene Committee regarding a workplace bullying case at the Ministry’s Northern Branch Office. He criticized the investigation report for failing to clarify the facts and demanded a reinvestigation. He also raised allegations that the branch director misused public funds for banquets and office renovations.
November 20, 2024In another committee session, Legislator Huang again raised concerns about the misuse of the Employment Security Fund, including spending on advertising and the cost of the minister’s glamour photos. He demanded a full review and requested all related receipts and documentation.
December 9, 2024Minister of Labor Hung Sun-han stated during a committee session that the ministry would review the use of the Employment Security Fund and pledged to follow legal procedures to recover the misused funds.
January 2, 2025Legislator Huang later published an article accusing the DPP of turning the Employment Security Fund into a private “slush fund” for high-ranking officials. He cited National Audit Office data indicating that the total amount of improperly used funds had reached up to NT$72.51 million.
January 23, 2025In a follow-up article, Legislator Huang criticized the Ministry of Labor for proposing to reimburse the fund through future general budgets rather than actively recovering the misspent money. He accused the ministry of making taxpayers shoulder the cost and questioned Minister Hung’s failure to fulfill his promise to reclaim the funds.
March 31, 2025The Ministry of Labor stated that it would strive to include reimbursement for the Employment Security Fund in the 2026 fiscal general budget.
In response to the controversy surrounding the fund's use, the Executive Yuan confirmed that the case had been referred to the prosecution for investigation.
Doubts of the People
Shouldn't the Employment Security Fund we pay to hire foreign migrant workers be used for us, the Taiwanese? Why was it spent on a concert?
The primary purpose of the Employment Security Fund is to promote national employment, provide labor assistance, and manage matters related to the employment of foreign workers. According to a report by the National Audit Office, in 2022, the Ministry of Labor spent millions of New Taiwan dollars to host a concert during which then-Minister Hsu Ming-chun performed on stage. This expenditure was found to be inconsistent with the fund’s intended use. The public has questioned why money that should support Taiwanese workers was misappropriated for activities unrelated to the fund’s core mission—and why it failed to serve those truly in need.
That money is ours! How can officials just take it to pay for personal photos and gifts?
The National Audit Office’s investigation revealed that the Employment Security Fund wasn’t just used for a concert—it also covered the cost of a professional photo shoot for the minister, the production of red envelopes and Lunar New Year couplets, ministerial New Year gift boxes, and gifts allegedly purchased by the director of the Ministry of Labor’s Northern Branch for personal public relations purposes. These expenses were deemed by the National Audit Office to be incompatible with the fund’s legal purpose. Many employers of foreign workers (including elderly caregivers) are outraged, believing that the mandatory contributions they pay when hiring foreign labor are being misused by officials to fund ideological PR campaigns, betraying public trust and expectations.
The National Audit Office said the money would be recovered—but will it? Or are taxpayers just taking the loss again?
The National Audit Office formally notified the Ministry of Labor that NT$72.24 million in expenditures from 2020 to 2024 did not align with the fund’s intended use and should be reclaimed. While the Ministry of Labor initially stated it would handle the matter according to the law, it later proposed including reimbursement in the 2026 general budget. This approach has sparked widespread public anger. Many believe that instead of pursuing the officials responsible, the government is shifting the financial burden onto taxpayers—essentially encouraging the misuse of public funds through inaction.
The Employment Security Fund is meant to protect our livelihood when we’re unemployed. If it's squandered like this, what happens if we really lose our jobs?
One of the fund’s core purposes is to stabilize employment, promote employment, and provide unemployment support. When resources are diverted for unrelated purposes, workers who are genuinely in need may find themselves without assistance. The misuse of these funds raises serious concerns about the weakening of protections for workers and a reduced safety net during periods of economic downturn or job loss.
If this fund can be misused like this, isn’t it possible that other government funds are also being squandered?
The exposure of this case has led to growing public skepticism about the oversight and management of government funds. If such a substantial misuse can occur within a fund designated for specific purposes, it’s natural for citizens to question whether other departments are similarly vulnerable. The scandal risks undermining public confidence in the government’s ability to manage taxpayer money responsibly.
