The Seoul Eastern District Prosecutors' Office has launched a raid on Korea Credit Data, a credit rating agency, for allegedly selling expensive add-on products to small businesses in exchange for improving their credit ratings. This investigation stems from suspicions that the agency violated credit information laws by requiring small businesses to purchase products worth millions of won to receive favorable credit assessments. The raids were conducted at the agency's headquarters in Yeongdeungpo-gu, Seoul, and its Daegu-Gyeongbuk branch as part of a broader investigation into the agency's practices.

Korea Credit Data, established in 2005 through the collaboration of government agencies and banks, specializes in the investigation and evaluation of corporate credit. It utilizes data from over 14 million companies to assess business and technological development capabilities and assign credit ratings. The agency's conduct has come under scrutiny before; in 2022, it faced allegations of unlawfully using technology certifications to adjust credit ratings and forcefully sell high-priced financial services to companies. These repeated allegations raise concerns about the integrity of credit rating practices within South Korea's financial system and suggest a potential misuse of power within accredited institutions.

As the investigation unfolds, the implications could be significant for smaller enterprises that rely on accurate credit assessments for growth and financing. If proven guilty, Korea Credit Data may face severe penalties and could influence regulatory changes to prevent such alarming practices in the future. The ongoing probe highlights the necessity for transparency and accountability in credit rating agencies to protect the interests of businesses and the economic environment overall.