Whistleblower Reward System Based on Indemnity and Anonymity
Working-Level Council Formed with Financial Services Commission and National Police Agency
Starting in January next year, the government will implement a whistleblower reward system to prevent practices where intermediaries lure businesses with policy fund loan services and then induce them to purchase insurance or manipulate documents. For policy funds that have already been processed, the government plans to introduce an immunity system that recognizes the validity of the funding process even if illegal activities are reported, thereby encouraging more active reporting.
Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, is giving a speech at the "Third-Party Unfair Intervention Resolution Task Force Kickoff Meeting" held on the 26th at the Korea Technology Finance Corporation in Yeongdeungpo-gu, Seoul. Ministry of SMEs and Startups
On December 26, the Ministry of SMEs and Startups launched the "Third-Party Unfair Intervention Resolution Task Force (TF)" and held its kickoff meeting at the Seoul headquarters of the Korea Technology Finance Corporation in Yeongdeungpo-gu, Seoul. The TF is headed by Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, and includes relevant departments from the ministry. It is organized into four main divisions: General Affairs, Legal and Institutional Reform, External Cooperation, and Media Response.
The TF has three core objectives: ▲ Establishing a system for status investigation ▲ Introducing a whistleblower reward system ▲ Building an active reporting and prosecution system.
First, to gain a detailed understanding of the situation, the Ministry of SMEs and Startups will conduct a fact-finding survey to determine whether there has been any unfair intervention during the execution of policy fund loans or guarantees. During on-site inspections by policy fund officers, the authenticity of application documents will be verified, and any third-party involvement will be closely examined.
In January next year, the whistleblower reward system will be implemented to actively uncover illegal and unfair intervention activities that occur in the shadows. During the policy fund loan review process, in-depth surveys will be conducted to determine whether illegal brokers were involved, and rewards will be provided for voluntary reports. However, for policy funds that have already passed the review, even if illegal broker involvement is admitted, the validity of the funding process will be recognized and anonymity will be guaranteed to encourage as many reports as possible.
Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, explained, "When the interests of illegal intermediaries and applicants are aligned, there is little incentive to report, and the number of reports is insufficient compared to the seriousness of the problem. We believe that only with anonymity and immunity in place can we expect active reporting."
Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, is giving a speech at the "Third-Party Unfair Intervention Resolution Task Force Kickoff Meeting" held on the 26th at the Korea Technology Finance Corporation in Yeongdeungpo-gu, Seoul. Ministry of SMEs and Startups
For detected illegal activities, a response system will be established so that policy financial institutions can immediately report or request investigations from law enforcement agencies.
To enable swift, government-wide responses, a working-level consultative body will be formed with participation from four policy financial institutions: the Ministry of SMEs and Startups, the Financial Services Commission, the National Police Agency, and the Financial Supervisory Service. An "integrated reporting manual" will also be developed to ensure that agencies can carry out prompt crackdowns and sanctions in a coordinated manner, following standardized procedures and responses.
Noh Yongseok stated, "To respond quickly to unfair intervention, we will strengthen our cooperation with relevant agencies such as the Financial Services Commission. Through the TF, we will review cases of unfair intervention in the field and promptly examine and actively pursue related policy tasks."
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