Gov't to Block Fraudulent Small Business Grants with Enhanced AI Screening
Starting from the second half of the year, the government will introduce an AI-powered review system and make evaluation procedures transparent to block the intervention of brokers targeting small business grants. This overhaul is a measure to enhance the fairness of the grant system and ensure benefits reach small business owners in need.
From the second half of the year, identical Internet Protocol (IP) connection records or similar/duplicate business plans will be automatically detected and blocked by an AI-based system. This system will first be applied to policy funds, R&D, and subsidy projects, and will be expanded to other institutions through technological advancement.
To enhance fairness in the evaluation process, measures will be implemented to randomly select external evaluation committee members and limit their participation frequency. The number of evaluators will also be increased and their composition diversified to prevent undue influence from specific individuals.
The Ministry of SMEs and Startups held the 5th meeting of its 'Task Force for Resolving Third-Party Improper Intervention Issues' and discussed overhauling the review systems for policy funds, R&D, and subsidy projects, along with legislative measures, with relevant ministries and agencies. In addition to improving the review system, the ministry is considering legislation to eradicate improper third-party intervention. Discussions included specifying the definition and types of 'improper intervention acts,' prohibiting them by law, and imposing penalties for violations. Plans are also underway to clarify the system for reporting investigations and referrals for improper intervention, prohibit retaliation against whistleblowers, and legally mandate the provision of whistleblower rewards and the establishment/operation of reporting centers.
Noh Yong-seok, First Vice Minister of SMEs and Startups, stated that it is time to move beyond the stage of establishing the system and focus on supplementing deficiencies and building a more effective response system. He announced plans to establish a legal foundation that includes definitions and prohibitions/punishments for third-party improper intervention, means to ensure investigative effectiveness, and whistleblower protection and reward systems.