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Preventing unjust intervention in the SME support initiative

  • Date2016-04-01
  • Hit871
The Small and Medium Business Administration (SMBA) is striving to prevent unjust intervention in its SME support initiative as part of the government’s national agenda of the "normalization of abnormalities." This effort is being made against a backdrop in which brokers have intervened in the government’s initiatives to support SMEs, undermining confidence in the government and causing damage to businesses.

The policy preventing unjust intervention in the SME support initiative is comprised of several programs, including streamlining of application procedures for policy funding, R&D and consulting; operation of a broker reporting center; formulation of a restriction criteria; and training to raise awareness of counselors and consultants.

As a preventive measure against improper third-party intervention, the SMBA streamlined application for government funding for SMEs, reducing the types of application forms from 31 to 17. It replaces certain financial s with ones more easily accessible. It also assigns counseling assistants to help applicants for government loans in application offices.

In addition, illegal broker reporting centers have been installed at 31 local offices of the Small & Medium Business Corporation (SBC), an affiliated organization of SMBA.

A system has been established in which SMBA and different related organizations can share broker information and jointly take countermeasures against any improper third-party intervention. And a new regulation was put into place in 2014 so that any consultant proven responsible for improper third-party intervention is permanently prohibited from participating in the government’s SME support initiative.

SMBA made it mandatory to provide training at least twice a year in order to raise awareness of external partners, such as counselors and consultants, and to integrate improper third-party intervention into the curriculum of consultant course.