"Enactment of the Rechallenge Support Act is an Innovative Approach"... Policy Forum

Government officials, academia, and representatives from small and medium-sized enterprises attended the "Policy Forum for the Enactment of the Rechallenge Support Act" held on the afternoon of the 26th at the Korea Federation of SMEs in Yeouido, Seoul, listening to discussions on institutional innovation and related topics.

[Asia Economy Reporter Kim Daeseop] The Korean Society for Small and Medium Venture Business Policy and the Korea Rechallenge Small and Medium Enterprise Association announced on the 26th that they held a 'Policy Forum for the Enactment of the Rechallenge Support Act.'

The forum, held in the afternoon at the Korea Federation of SMEs in Yeouido, Seoul, was attended by over 50 officials from the government, National Assembly, academia, and the SME sector. They exchanged opinions on institutional innovation for creating a rechallenge ecosystem and measures for enacting the Rechallenge Support Act.

Han Jeonghwa, president of the Korean Society for Small and Medium Venture Business Policy, said, "The enactment of the Rechallenge Support Act is an innovative approach," adding, "Bold institutional innovation is necessary to activate a rechallenge ecosystem where failure experiences become assets."

President Han emphasized the need to establish systematic support policies. He said, "To reduce the risks of business failure, minimize failure costs, and facilitate rechallenge after failure experiences, integrated and systematic support policies must be prepared," and added, "Institutional innovation to revitalize rechallenge is impossible by the efforts of a single government ministry alone; cooperation and collaboration among the political sphere and relevant government ministries are required."

In particular, for institutional innovation to revitalize the rechallenge ecosystem, he emphasized ▲ establishing step-by-step failure management and rechallenge systems ▲ expanding rechallenge opportunities ▲ and broadening the scope of debt adjustment.

Yu Heesook, president of the Korea Rechallenge Small and Medium Enterprise Association, also said, "If a process that can institutionally support small and medium entrepreneurs starting over with the same opportunities as the first time is established, countless Bong Joon-ho directors of the SME sector can be born."

At this forum, participants went beyond simply raising issues about the existing rechallenge ecosystem and presented various opinions from the overall structural perspective of startups. Government ministries related to startups, including the Ministry of SMEs and Startups, which is in charge of rechallenge policies, and the Financial Services Commission, agreed to coordinate and link with each other to create a realistic rechallenge startup ecosystem and secure a startup safety net by breaking down regulatory barriers specific to each ministry.

Professor Bae Taejun of Hanyang University's Department of Startup Convergence, in his presentation on 'Measures for the Enactment of the Rechallenge Support Act,' said, "Countries like the United States and Europe handle rechallenge-related policies based on the assumption that failure is a constant," adding, "Domestically, legal and institutional devices to enhance the effectiveness of promoting rechallenge are insufficient, and although various support measures are being implemented, they remain one-off."

Professor Bae emphasized, "Considering the uniqueness of rechallenge, an activation law that differs from the general Startup Support Act and a support law focusing on removing obstacles that hinder rechallenge should be provided."

This content was produced with the assistance of AI translation services.