KoreaTechDesk | Korean Startup and Technology News

Tue, September 02, 2025

Sign in

Virtual Demo Day
Menu
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
Home Government Policies

Korea Moves to Define ‘Broker vs. Consultant’ as MSS Prepares Bill on Third-Party Intervention

by Zee Cindy
September 1, 2025
in Government Policies
0

The role of third-party intermediaries in government support programs is drawing closer scrutiny within Korea’s maturing startup ecosystem. With founders often turning to so-called “brokers” to navigate subsidy applications, the Ministry of SMEs and Startups (MSS) is drafting legislation to separate illegal practices from legitimate consulting (broker vs. consultant) — a move aimed at improving transparency and safeguarding entrepreneurs in a maturing ecosystem.

SME Ministry Takes Aim at Ambiguous Third-Party Roles with New Bill Study

The Ministry of SMEs and Startups (MSS) is preparing legislation to address the blurred line between illegal “brokers” and legitimate consultants in government support programs.

With startups and SMEs often relying on intermediaries to navigate complex subsidy programs, the ministry aims to establish clear criteria, reduce improper practices, and bring greater transparency to a market that has long operated in legal and regulatory gray zones.

On August 31, government officials confirmed that MSS will commission a research study for a draft bill tentatively titled the “Act on the Prevention of Improper Third-Party Intervention.” The study, to be completed by year-end, will lay the foundation for legislative proposals in early 2026.

Broker vs. Consultant: Eradication and Building Legitimate Standards

Until now, government policy discussions focused largely on eliminating brokers, who are often accused of falsifying documents, impersonating officials, or charging excessive retainers and success fees.

But the new study will also explore whether standardized consulting services can play a legitimate role in helping SMEs apply for government support programs.

The ministry initially planned to include three points in the draft bill:

  • Establishing a legal definition of improper third-party intervention.
  • Codifying a prohibition clause against such conduct.
  • Creating a legal basis for policy finance institutions to sanction brokers.

However, after repeated feedback from SME founders during the 4th SME Policy Site Tour, the scope has expanded. Minister Han Seong-sook has directed staff to also examine whether consultants can be formally recognized within a regulated framework.

Field Voices on Broker vs. Consultant: Cost, Transparency, and Demand

Startup and SME leaders acknowledge that demand for consulting exists because many lack information or resources.

Jung Hye-in, CEO of iTruck, explained that she once paid around ₩600,000 (approx. $444) for a broker to review her grant proposal from the perspective of evaluators:

“It cost about KRW 600,000 up front for someone to review my report from the perspective of an evaluator. If we had easier access to such guidance, it would be far less difficult for new founders.”

Oh Kyung-jin, CEO of Taelim Industry, also added:

“The current market isn’t transparent — prices are arbitrary, and many exploit this. Standardizing the term ‘broker’ and setting institutional guidelines could be one way to solve it.”

Still, cases of abuse remain a concern. Brokers have been reported to charge upfront retainers, demand success fees of about 15% upon approval, or even falsify documents to inflate subsidy amounts.

The Ministry of SMEs and Startups is therefore weighing measures such as introducing standard contracts that clearly define consulting scope, fees, and responsibilities.

Suggestions for Institutionalized Consulting

Some industry leaders argue that ignoring the consulting market only drives it underground. One SME manufacturer told officials that predefined fee structures with reimbursement options could allow consulting to develop into a legitimate business area, rather than fostering more illegal brokers.

Others propose using MSS-affiliated associations, including Innobiz, the Korea Venture Business Association, or MainBiz to provide structured services.

Kim Jung-hyuk, CEO of CyberTech Friend, suggested:

“If associations provided consulting to their members, support would be more efficient and post-project management more effective than leaving companies to hire individual brokers.”

South Korea is Prioritizing Founder Protection and Transparency

Finally, the debate over broker vs. consultant underscores broader questions about policy accessibility, founder education, and fairness within the whole startup and SME ecosystem in South Korea. Government support programs remain vital for early-stage companies, but uneven information and opaque consulting practices risk undermining trust.

By moving toward a formal framework: through prohibition, standardization, or institutionalization, the MSS is signaling that founder protection and transparency are priorities for Korea’s next stage of ecosystem growth.

And so, if enacted, the proposed legislation could reshape how startups and SMEs engage with third-party advisors, transforming a market currently dominated by informal actors into one governed by legal standards, standard contracts, and association-backed support.

– Stay Ahead in Korea’s Startup Scene –
Get real-time insights, funding updates, and policy shifts shaping Korea’s innovation ecosystem.
➡️ Follow KoreaTechDesk on LinkedIn, X (Twitter), Threads, Bluesky, Telegram, Facebook, and WhatsApp Channel.

Tags: Governmentgovernment initiativegovernment policiesgovernment programgovernment supportillegal brokersKorean GovernmentKorean Ministry of SMEs and StartupsKorean StartupKorean StartupsMinistry of SMEs and StartupsMinistry of SMEs and Startups (MSS)new MSS billSME consultingSMEs and StartupsSouth Korean governmentStartupstartup support programsStartupsthird-party brokerthird-party consultant
Previous Post

Korea Federation of SMEs to Launch K-Goods Fair 2026 in Las Vegas, Expanding U.S. Market Access for Korean Startups

Next Post

Newin’s Touchclass: Reinventing Corporate Training and Knowledge Sharing with a User-First EdTech Solution

Next Post

Newin’s Touchclass: Reinventing Corporate Training and Knowledge Sharing with a User-First EdTech Solution

POPULAR POSTS

10 Korean AI Startups Head to New York as Government Ex...
Ten Korean AI and digital companies are…
by Chloe kim . 25 Aug 2025

Korea’s TOBESOFT and FPT Vietnam Forge Alliance to Le...
Low-code platform development is evolving from a niche tool into a backbone of global digital transformation, and Korean firms are…
by Zee Cindy . 26 Aug 2025

Law&Company’s SuperLawyer Brings AI-Driven Legal ...
As legal systems grow increasingly complex and AI capabilities rapidly advance, South Korea’s Law&Company Co., Ltd. is charting a new…
by Chloe kim . 27 Aug 2025

First Foreign Unicorn in Sight: Expanded Startup Korea ...
A year after launching the Global Startup Center, South Korea is doubling down on inbound startup growth with expanded policies…
by Dae-jung Park . 27 Aug 2025

Korea Doubles 2026 Mother Fund to Record $1.5B, Launche...
South Korea is significantly scaling up its startup and innovation financing, doubling the size of its 2026 Mother Fund to…
by Zee Cindy . 30 Aug 2025

Register for Event

[the_ad id=”18508″]

MOST READ ARTICLE OF THE WEEK

1.
South Korea’s Ministry of SMEs and Startups Unveils $2.23 Billion Support Plan for Startups in 2025
3 Jan 2025
2.
South Korea Shines at CES 2025: Global Innovation Champion, Record-Breaking K-Startup Pavilion, Award-Winning Innovations
10 Jan 2025
3.
South Korea Opens Applications for the 10th K-Startup Grand Challenge 2025 – Korea’s Flagship Market-Entry Program Offering ₩950M (US$633K) in Government Support 
7 May 2025
4.
K-Startup Grand Challenge : Empowering Global Startups and Driving Innovation in South Korea
28 Apr 2025
5.
AI in South Korea: Startups Leading the Generative AI Revolution
1 Apr 2025

List Article

1.
6 Reasons Why Seoul Is Poised to Become a Top 5 Global Economic Hub by 2030
20 Aug 2024
2.
Top Co-working Spaces for Startups & Companies to Explore in South Korea
3 Apr 2024
3.
Top Accelerators in South Korea Shaping Startup Success
29 Nov 2023
4.
Top Korean Venture Capital Firms Backing Startup Success
26 Oct 2023
5.
Top Apps for Seamless Korean to English Translation
14 Aug 2023

Similar Articles

Government Policies

Korea Doubles 2026 Mother Fund to Record $1.5B, Launches $74B Growth Fund for AI and Deep Tech

More
Government Policies

Boosting Startup Exits: Korea’s Pension Fund Pool Commits ₩40B ($29M) in First-Ever Venture Investment

More
Government Policies

First Foreign Unicorn in Sight: Expanded Startup Korea Special Visa, Regional Hubs, and Tailored Founder Support

More

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

Contact us : [email protected]

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

© 2023 Koreantech News & Media Korea Zrt. All rights reserved.

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

We hope you enjoy our content, May you please give us Feedback regarding our website!

Single Post Feedback

dgdfgfdgdf

What you think about Koreatechdesk, Share your idea with us!

feedback popup

Invitation submission has been closed

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.