Politics · South Korea · 4 hrs ago
South Korean lawmaker proposes penalties for policy-fund brokers
South Korean lawmaker Jo Ji-yeon has proposed changes to two laws aimed at stopping brokers from improperly interfering in applications for government policy funds.
The funds are intended to support small businesses and small and medium-sized companies.
The proposal would define abuses such as falsifying documents, improper influence over reviews, forcing applicants to buy products, and demanding excessive fees.
It would also let the Ministry of SMEs and Startups request documents to check suspected cases and refer them for investigation or file complaints.
The proposal follows concerns raised at a parliamentary audit that some brokers exploit the complex application process, including by bundling insurance or charging fees of up to 8% of a loan.
The changes are proposed, and the source gives no details on their next legislative steps.
South Korean lawmaker Cho Ji-yeon has proposed amendments aimed at preventing brokers from improperly intervening in applications for policy funds for small businesses and small and medium-sized enterprises.
The proposal would define practices such as falsifying documents, improper lobbying, requiring purchases of specific products and demanding excessive advisory or agency fees as improper intervention.
It would add penalties and allow the Ministry of SMEs and Startups to request materials, refer cases for investigation or file complaints.
The proposal follows reports at a National Assembly audit that some brokers bundled insurance products with application services or demanded fees of up to 8% of loan amounts.
Cho said abuse of a support program for struggling businesses must be stopped.
- Who
- Cho Ji-yeon, a People Power Party lawmaker representing Gyeongsan, North Gyeongsang Province.
- What
- She proposed amendments to laws to curb improper broker involvement in policy-fund applications and introduce penalties.
- When
- November 5, 2026.
- Where
- South Korea.
- Why
- The proposal aims to prevent brokers from exploiting the application process and harming small businesses and small and medium-sized enterprises.
This story does not have two clearly opposing sides.
A National Assembly audit raised concerns that some brokers exploited the complex policy-fund application process by bundling insurance products or seeking fees of up to 8% of loan amounts.
Cho Ji-yeon announced that she had proposed amendments to curb improper broker involvement in policy-fund applications.
- Proposer
- Cho Ji-yeon, People Power Party lawmaker for Gyeongsan, North Gyeongsang Province
- Proposed laws
- Small Business Protection Act and Small and Medium Enterprise Promotion Act
- Proposed fee-related measure
- Define excessive advisory or agency fees as improper intervention
- Reported broker fees
- Up to 8% of loan amounts
- Responsible ministry
- Ministry of SMEs and Startups
1 source
What people are saying
Policy funds are a system to support small businesses and small and medium-sized enterprises facing difficulties
Acts that exploit this system to collect unfair fees and cause harm must be eliminated