Sojinkong Blocks Unfair Broker Intervention in Intelligent Store Technology Distribution Project

Strict Crackdown on Unfair Interference Such as Illegal Proxy Applications and Payment of Self-Contribution Fees

The Small Enterprise and Market Service (SEMAS) announced on the 24th that it strictly prohibits illegal unfair interference in the Intelligent (Smart) Store Technology Distribution Project and will impose strong sanctions if violations are detected.

The Intelligent (Smart) Store Technology Distribution Project is a program that supports the introduction of smart technologies to strengthen the competitiveness of small business owners. It operates by allowing small business owners who need smart technology to select companies that possess the desired technology.

As the project expands, concerns are growing about third parties unfairly benefiting by bypassing normal procedures, such as filling out application documents on behalf of small business owners without their consent or paying their self-contribution fees to earn commissions. If such unfair interference is detected, disadvantages such as government subsidy recovery and restrictions on participation in government projects may be imposed according to the "Act on the Management of Subsidies" and the "Ministry of SMEs and Startups Subsidy Project Management Regulations." In fact, SEMAS has taken strong measures such as recovering the full subsidy and restricting project participation for three years against technology supply companies found to have engaged in unfair practices.

Last month, a case was detected where someone impersonated SEMAS and sent text messages. The messages sent to small business owners in specific industries included the name of SEMAS along with a website address linking to a free application page for "electronic advertising boards (digital signage)." However, the Intelligent (Smart) Store Technology Distribution Project is currently not recruiting for digital signage technology. Additionally, SEMAS has never officially sent promotional text messages targeting specific industries or technologies. SEMAS stated that such impersonation acts may result in fines of up to 10 million KRW.

SEMAS plans to strengthen publicity and inspections to prevent such unfair interference and impersonation text message damages. A SEMAS official said, "We will continue to enhance monitoring of unfair interference and illegal activities to ensure fairness and transparency in the Intelligent (Smart) Store Technology Distribution Project, and create an environment where small business owners can confidently adopt technology."