SMEs Collaborate to Minimize COVID-19 Impact

Minister Park Young-sun Holds Meeting with Small and Medium Enterprises to Minimize COVID-19 Damage and Achieve Early Recovery

Minister Park Young-sun

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups has decided to implement a three-stage strategy to support small and medium-sized enterprises (SMEs) and small business owners struggling due to the spread of the novel coronavirus infection (COVID-19). The strategy includes minimizing damage and resolving difficulties, supporting market diversification and sales increase, and promoting early normalization.

On the morning of the 16th, Minister Park Young-sun of the Ministry of SMEs and Startups and Kim Ki-moon, chairman of the Korea Federation of SMEs, held a meeting at the Korea Federation of SMEs with about 20 people including cooperative association chairpersons and businesspeople to discuss minimizing COVID-19 damage and early recovery. This meeting was organized to hear voices from the field regarding the damage status of SMEs and small business owners caused by COVID-19 and to reflect the results in policies by identifying areas for supplementing the government’s existing measures.

To minimize the damage to SMEs and small business owners caused by COVID-19, since the end of January, the Ministry of SMEs and Startups and its affiliated organizations have established an emergency response team that participates fully to identify difficulties faced by SMEs both domestically and those operating in China, striving for immediate solutions. Minister Park also conducted a total of 18 sector-specific meetings and field visits to accurately grasp the situation and listen to voices from the field. Based on this, a comprehensive livelihood economy measure and an additional supplementary budget of 1.7 trillion won were prepared last month.

However, the SME sector unanimously expressed that these support policies have not yet been felt on the ground. Chairman Kim said, "Although the government is making all-out efforts such as establishing comprehensive support measures for COVID-19 and preparing an additional supplementary budget, the field has not yet felt the government’s support," adding, "All capabilities must be devoted to helping COVID-19-affected companies overcome the crisis, including preparing additional support measures for SMEs in Daegu and Gyeongbuk." The Korea Federation of SMEs explained the severe damage situation of SMEs and small business owners and appealed for the prompt preparation of related countermeasures. Specifically, they proposed nine difficulties including special measures for SMEs in Daegu and Gyeongbuk, shortening the time required for funding support and expanding employment retention subsidies to strengthen policy fund support for small business owners, expanding loan limits for affected companies including special guarantee support, and strengthening support for export-import SMEs. SMEs and small business owners attending the meeting also voiced their difficulties caused by COVID-19 and requested expanded financial support, improved support processes, strengthened support for export-import SMEs, and flexible application of public procurement systems.

In response, Minister Park promised to expand financial support such as policy funds for SMEs and small business owners and to improve systems such as establishing a rapid review team so that applying companies can receive support quickly. She also announced plans to engage in overseas marketing to discover alternative markets, hold the Korea Together Sale to promote domestic consumption, and support joint marketing for traditional markets.

Minister Park said, "Our country has overcome economic crises in the past with the connected strength of the people, SMEs, and small business owners," adding, "I believe the spirit of 'coexistence and mutual growth,' which means living together and supporting each other especially in difficult times, is the strongest power to overcome COVID-19."

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