COVID-19 Troubles Worsened by Impersonation Scams... Small and Medium Enterprises and Small Business Owners 'Betrayed'

Main-Biz Association and Small Enterprise Market Promotion Corporation, etc. Damage

Korea Management Innovation Small and Medium Business Association Website

[Asia Economy Reporter Kim Daeseop] Amid heightened social and economic anxiety due to the spread of the novel coronavirus infection (COVID-19), there have been continuous cases of impersonation of organizations supporting small and medium-sized enterprises (SMEs) and small business owners.

The Korea Management Innovation Small and Medium Business Association (MainBiz Association) recently received a suspicious contact from one of its member companies. The member company reported that someone claiming to be an association official requested the mobile phone numbers of the company’s CEO and employees, and inquired with the association about the authenticity of this request. The member company also informed the association that they were asked for consulting fees related to obtaining MainBiz certification.

The association began investigating similar cases among its members. When a company obtains MainBiz certification, it receives various benefits such as financial and tax incentives for three years. The association suspects that the impersonators approached SMEs with malicious intent and has launched an investigation. The MainBiz Association is designated by the Ministry of SMEs and Startups to operate and manage the MainBiz system.

The association is currently providing damage prevention guidance to its members. An association official warned, "The association never requests any personal information of company executives or employees over the phone. Also, we do not charge any fees or provide guidance on obtaining MainBiz certification through external organizations not listed on MainBizNet or outside the association."

Cases of impersonation exploiting the unstable situation of SMEs and small business owners struggling with financial management and business operations due to the prolonged economic downturn caused by COVID-19 continue unabated. This is a blow to SMEs and small business owners already suffering from economic recession and sluggish domestic demand.

In April, the Ministry of SMEs and Startups reported and requested an investigation by the Korean Intellectual Property Office regarding a person who indiscriminately distributed messages on Facebook recruiting mobile applicants for SME and small business policy funds. This person advertised that they would handle policy fund applications and was found to have used the government’s official logo without permission. The ministry explained that unauthorized use of government logos and indiscriminate distribution violate the Act on the Prevention of Unfair Competition and Protection of Trade Secrets, which is why the case was reported to the Intellectual Property Office.

In February, during the early spread of COVID-19, there was a case of impersonation of the Small Enterprise and Market Service (SEMAS). Someone pretending to be a SEMAS employee called self-employed individuals, claiming they had been selected for a project supporting promotional marketing and demanded payment. The self-employed person believed the contact was from SEMAS and paid three years’ worth of fees by credit card without suspicion. SEMAS launched an investigation after receiving reports of damage and confirmed that the impersonation was carried out by a private company unrelated to SEMAS employees.

A SEMAS official stated, "SEMAS does not engage in sales activities or solicit paid advertisements or product subscriptions," and added, "We have sought legal advice from our legal team and taken legal action against cases where our name was misused to harm customers."

This content was produced with the assistance of AI translation services.