Why This Deserves a Second Look Now
"Sign up for a KRW 300,000-a-month insurance policy and we'll get you KRW 100 million in policy funds." That is a typical broker pitch reported in the Korean press this year. The Ministry of SMEs and Startups (MSS) launched its Task Force on Third-Party Improper Intervention in late December 2025, chaired by the First Vice Minister, and the crackdown has now run for nearly a year.
What "Third-Party Improper Intervention" Means
Getting advice is not prohibited. The problem is intervention that goes beyond legitimate advisory or agency work and becomes improper.
Three Measures Already in Force
Field survey
The four policy finance institutions — KOSME, the Small Enterprise and Market Service (SEMAS), KIBO, and the Korea Federation of Credit Guarantee Foundations — began an anonymous online survey of new and existing borrowers on January 21.
Reward scheme
Rewards run up to KRW 2 million per report and are paid in stages as the investigation progresses. For reports that are significant and specific, up to 20% of the total can be paid in advance. In April, SEMAS paid a combined KRW 1.5 million for three reports that led to investigation referrals — the first payout.
Immunity for self-reporting
A company entangled with a broker that comes forward can be exempted from loan recall, guarantee cancellation, and restrictions on new loans or guarantees, unless it colluded illegally or in bad faith.
Other reported steps include investigation requests and administrative fines (March) and blocking of applications from the same IP address (April).
Where the Legislation Stands
At a February task force meeting, MSS said it was reviewing a registration system for policy-fund consultants and the legal basis for it. In the National Assembly, a bill from Rep. Ahn Cheol-soo early in the year was followed on June 19 by Rep. Heo Seong-moo's amendment to the Small and Medium Enterprises Promotion Act. According to press reports, the Heo bill would:
As of October 12, however, we could not confirm that the amendment has passed a plenary vote or been promulgated. It is behind the original "first half of 2026" target and is best described as legislation in progress. Penalty levels and registration requirements may change during deliberation.
Applicant Companies Bear Responsibility Too
A Checklist for Spotting Legitimate Advisory
KITIM's Principles and How to Reach Us
KITIM advises on business plans grounded in fact. We do not write false documents, lobby on a client's behalf, or promise approval. We look beyond policy loans to R&D programs and corporate certifications and design a financing roadmap that fits your company. If you are unsure whether an offer you received is legitimate advisory, please contact us through the KITIM consultation request form.