Intensive reporting period runs June 29 through July 28
Fast-track reward raised from 400,000 to 600,000 won for one month
Voluntary disclosures by companies to be reviewed for immunity; law enforcement cooperation also planned
The Korea Credit Guarantee Fund (Kibo) announced Tuesday it will run a month-long intensive reporting period through July 28 to crack down on unauthorized third-party interference in the policy finance support process.
Unauthorized third-party interference refers to outsiders unrelated to an applicant company inserting themselves into the policy finance process — including guarantee and technology assessments — to demand improper fees, or exploiting public institution support systems in ways that harm businesses. The most common form involves brokers charging consulting fees to small and medium-sized enterprises and startups with little experience applying for policy finance.
Kibo launched the intensive reporting period on Sunday. To encourage tips, the agency will temporarily raise its fast-track small reward from 400,000 won ($259) to 600,000 won for reports that include specific circumstances and credible supporting evidence.
Additional rewards may follow depending on the outcome of investigations or administrative proceedings, with total payouts reaching up to 2 million won. Kibo will review reports submitted through its illegal broker reporting center and, where necessary, coordinate with law enforcement on follow-up action.
A voluntary disclosure immunity program will run alongside the reporting drive. Companies that come forward on their own to report third-party interference will have their eligibility for immunity reviewed under the relevant regulations, with the aim of encouraging self-reporting.
Policy finance institutions have been stepping up their response after concluding that broker activity — which often invokes the names of public institutions or government support programs — could lead to financial harm for small and medium-sized enterprises. Because policy finance is assessed on a company's creditworthiness, technological capability and business viability, third-party involvement does not in fact improve the chances of receiving support. Even so, pitches along the lines of "I can get you the funding" have persisted in the field.
Kibo has previously operated a dedicated task force on third-party interference, set up an anonymous reporting channel, distributed response guidelines and conducted on-site outreach. During this intensive period, the agency said it will improve reporting accessibility and strengthen its review of incoming cases.
"Unauthorized third-party interference undermines the fairness and credibility of policy finance," said Park Ju-seon, Kibo's executive managing director. "We will work to encourage reporting of illegal brokers and to build a transparent and fair policy finance environment."
hong@heraldcorp.com
