SEMAS Pays Bounties for Reports on Improper Third-Party Intervention in Policy Funds

Three Cases Referred for Investigation Including Agency Impersonation and Fraud

Total of 1.5 Million Won Awarded for Three Highly Credible Reports

The Small Enterprise and Market Service (SEMAS) announced on April 29 that it has awarded bounties for reports submitted to its reporting center regarding improper third-party intervention (illegal brokers) in policy funds for small businesses, which resulted in actual criminal investigations.

This marks the first case among public agencies participating in the "Task Force for Solving the Issue of Improper Third-Party Intervention" where a bounty was actually paid out through the operation of a reporting reward system. It is considered a tangible achievement since the implementation of the system.

Daejeon Small Enterprise and Market Service Headquarters

SEMAS awarded a total of 1.5 million won for three cases that were referred for investigation after being reported to the center. These cases involved: demands for upfront fees or deposits in exchange for guarantees of policy fund loans or definite assurance of approval within a specific period; and instances where forged documents were sent by impersonating the agency. The reports were based on concrete evidence, leading to verification of the facts and a legal review before being forwarded for investigation. Due to the credibility of the reports and their contribution to exposing the wrongdoing, the decision was made to pay out the bounties.

The reporting reward system, launched in January, connects the existing improper third-party intervention reporting system with bounty payments to encourage active reporting and increase the likelihood of detecting such activities. The system is open to individuals who provide significant information leading to the exposure of illegal brokers. Reports are subject to verification of facts and legal review to determine whether a criminal investigation should be requested. The specificity, severity, and degree of involvement in improper intervention are comprehensively considered in determining the eligibility and amount of the reward.

Bounties are paid up to a maximum of 2 million won per case and are awarded in stages depending on the progress of the investigation. In particular, reports that directly contribute to uncovering illegal activities are prioritized for bounty payments, and additional payments may be made depending on the progress of the investigation. SEMAS Chairman Tae-Yeon In stated, "The reporting reward system is a key tool in eradicating illegal brokers, and active reporting is of utmost importance for detecting improper intervention. We will continue to enhance incentives through bounty payments and do our best to create a sound environment for the provision of policy funds."

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