Field Meeting on "Improper Third-Party Intervention"
Rising Cases of Forced Insurance Sales and Other Damages
Consultants Demand Fees by Creating a False Sense of Urgency
The Ministry of SMEs and Startups is preparing institutional measures to address the issue of “unfair third-party intervention” in the process of providing policy funds.
On September 22, the Ministry held an on-site meeting at the Central Center of the Small Enterprise and Market Service in Jongno-gu, Seoul, to listen to the voices of small and medium-sized enterprises (SMEs) and small business owners who have experienced unfair third-party intervention in the policy funding ecosystem.
The Small Enterprise and Market Service, which operates the policy funds, introduced the case of Consulting Firm A, which impersonated the agency and misled people into believing it was the actual institution. Firm A used the agency’s name and corporate identity without authorization in its promotional materials, advertising as if it were related to the Small Enterprise and Market Service or the policy funds for small businesses. The agency reported these advertisements through its reporting center and took active measures in response.
Statements from companies that have experienced unfair third-party intervention in policy funding at the field level were also shared.
Mr. B, the head of an SME, said, “In the field, many consultants related to insurance are demanding that companies purchase insurance products in exchange for policy fund consulting,” adding, “There appears to be a need for sanctions against such practices.”
Ms. C, a representative of a small business, said, “Consulting firms often approach us first, explaining as if they are the actual institution handling policy funds, or misleading us into thinking that we are missing out on urgent funds, and then demand fees.”
During the meeting, participants discussed the need to strengthen monitoring for prevention and to establish legal and institutional safeguards to create a policy funding ecosystem free from unfair third-party intervention.
Experts recommended that legal and institutional frameworks should be improved to prevent damage caused by unfair third-party intervention. At the same time, they suggested that legitimate policy fund consulting that benefits SMEs and small business owners should be formalized and promoted.
Han Sung-sook, Minister of SMEs and Startups, stated, “Through this meeting, we were able to specifically identify cases and illegal practices of unfair third-party intervention occurring in the field,” adding, “We will review legal and institutional improvements to prevent damage from such intervention.”
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