National Power Party Jo Ji-yeon proposes a bill to ‘eradicate policy fund brokers for small business owners’

People Power Party lawmaker Jo Ji-yeon (Gyeongsan, Gyeongsangbuk-do) announced on the 5th that he proposed an amendment to the Small Business Protection Act and the Small and Medium Business Promotion Act, which aims to block unfair intervention by brokers in applications for policy funds for small and medium-sized businesses.

The revised bill specifies as 'unfair interference' the following actions that occur during the application process for policy funds: ▲ false preparation or falsification of documents ▲ unfair solicitation or mediation related to screening ▲ request to purchase a specific product ▲ excessive request for consulting or agency fees, etc., and includes new provisions for punishment.

In addition, in the event of an unfair intervention, the Ministry of SMEs and Startups is given the right to request submission of data to confirm the relevant facts and can request an investigation or file a complaint.

Previously, during the audit of government affairs by the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee, the behavior of some brokers was pointed out by abusing the complicated policy fund application process to sell insurance products on their behalf, or demanding commissions of up to 8% of the loan amount.

Rep. Cho emphasized, “Policy funds are a system to support small business owners and small and medium-sized enterprises that are experiencing difficulties,” and added, “Acts that abuse this system to collect unfair fees and cause damage must be eradicated.”