Korea SMEs and Startups Agency (KOSME) said on the 28th that it will move to crack down on third-party improper intervention in policy funds, known as "illegal brokers."
Korea SMEs and Startups Agency (KOSME) formed a joint response system from late last year with the Ministry of SMEs and Startups, policy finance institutions under it, the Financial Services Commission, the Financial Supervisory Service, and the Korean National Police Agency by launching a "task force (TF) to solve third-party improper intervention in policy finance."
Based on two TF meetings and working-level consultations among subordinate institutions, it drew up "three immediate action tasks" to eradicate third-party improper intervention in policy funds.
The "three immediate action tasks" are: ▲ institution-by-institution fact-finding surveys of corporations using policy funds ▲ introduction of a reward program for reporting third-party improper intervention ▲ an immunity program for voluntary reporters. These measures aim to enhance fairness and credibility in the policy finance market.
First, it will conduct a fact-finding survey of existing and new users of policy funds to identify whether there was harm from illegal brokers, experiences of improper intervention, and types of damage. Each institution will carry it out anonymously via mobile and online methods. The results will be used as basic data for future system improvements. This is a procedure to grasp the status of corporations regardless of whether they file reports.
The reward program is being introduced to encourage tips about "illegal brokers" who lead third-party improper intervention. Rewards of up to 2 million won per case will be paid, and up to 400,000 won will be paid first to reporters who submit decisive evidence with high importance and specificity.
Even if a small or medium-sized corporation participated in improper intervention, if it reports voluntarily, it will not face sanctions such as recovery of KOSME policy funds or restrictions on new loans. The aim is to ease the burden of reporting and strengthen incentives to provide information.
Going forward, the Ministry of SMEs and Startups (MSS) and Korea SMEs and Startups Agency (KOSME) plan to strengthen their response system to eradicate third-party improper intervention. Reports related to third-party improper intervention in policy funds should be filed with the "illegal broker reporting center" set up at KOSME. KOSME said it plans to respond with swift investigations and by requesting criminal probes into reports received.
Chair Lee Kang-seok of Korea SMEs and Startups Agency (KOSME) said, "In step with the Ministry of SMEs and Startups (MSS)'s strong determination to stamp this out, KOSME will take the lead in eradicating third-party improper intervention to restore fairness and trust in policy finance," adding, "We will implement the three immediate action tasks without fail and continue to identify improvement tasks to eradicate third-party improper intervention."