Jungjingong Introduces New Pre-Verification System for Policy Fund Usage

Proactive Verification to Prevent Misuse
Enhancing Transparency in Fund Utilization

The Small and Medium Business Corporation (SBC) announced on the 11th that it will newly introduce the ‘Policy Fund Usage Pre-Verification System’ to verify the purpose of policy fund usage in advance.

SBC provides low-interest policy funds to achieve policy goals such as supporting startup and export companies, assisting young entrepreneurs, and helping business owners restart after closure. Additionally, to enhance transparency in the use of policy funds and prevent misuse, SBC inspects the usage details of loan funds.

Jungjingong

Specifically, the inspection targets include benefits such as support eligibility, preferential interest rates, and exceptions to loan restrictions for ▲Youth-Exclusive Startup Funds ▲Re-Startup Funds ▲Working capital exceeding 300 million KRW. If supported companies use the funds for purposes other than business management, they face sanctions such as exclusion from new policy fund loans for three years.

The newly introduced pre-verification system this year is linked with the National Tax Service Hometax and the Four Major Social Insurance Information Connection Center, enabling real-time verification of electronic tax invoice issuance details and four major social insurance subscription information without submitting separate documents, thereby reducing the burden on supported companies to prove the purpose of fund usage.

Kim Moon-hwan, Director of Corporate Finance at SBC, stated, “Previously, supported companies had the burden of directly submitting evidence documents for loan fund usage and there were difficulties in verifying the sources of submitted documents.” He added, “Through the newly introduced pre-verification system this year, we expect to improve customer convenience and enhance transparency in the use of policy funds.”

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