[Deputy Editor's Column] Why 'Sobujang' Came to Mind During COVID-19

[Asia Economy Kim Daeseop, Deputy Director of the Ministry of SMEs and Startups] Recently, I had the chance to once again hear the concerns of small and medium-sized enterprises (SMEs) related to materials, parts, and equipment (SoBuJang). The image of SoBuJang SMEs, which had been momentarily forgotten amid the global spread of the novel coronavirus disease (COVID-19) this year, suddenly came to mind.

This SME has long been striving to localize equipment related to the processing of semiconductor core parts, which have a high dependence on Japan.

Although they possess localization technology, they faced difficulties in mass production due to lack of facilities and funds. Last year, they received policy fund support through the government’s measures to strengthen SoBuJang competitiveness. However, they expressed concern that they might not receive part of the infrastructure construction subsidy related to mass production.

Since the beginning of this year, massive policy funds have been continuously injected to support SMEs and small business owners affected by the COVID-19 crisis. Although demand for funds has surged, the existing scale of policy funds is far from sufficient, so support measures have been prepared through changes in fund operation plans and supplementary budgets.

The voices from SMEs and small business owners affected by COVID-19 are similar to those heard for several months after Japan’s export restrictions in July last year, when they consistently expressed difficulties. Despite the government’s intensive support measures, the sense of impact on the ground remains low.

Just as the government has announced successive measures to support SMEs and small business owners affected by COVID-19, various measures were also promoted to overcome the crisis during Japan’s export restrictions. Policy funds were massively invested in research and development (R&D), infrastructure construction, and market expansion for the SoBuJang sector, which has high dependence on Japan. Emergency management stabilization funds were also prepared to support affected SMEs.

Nevertheless, the anxiety of demanders remains both then and now. Although the government is making multifaceted efforts for rapid fund support, there are difficulties in swift execution due to on-site workload overload. Also, the reality is that funds are insufficient for adequate support.

As the COVID-19 crisis prolongs, more investment and support of policy funds are urgently needed to overcome the damage. Government budgets and personnel should continue to be concentrated and supported as they are now.

At the same time, there must be no setbacks in policies fostering the SoBuJang sector. Of course, the scale of damage from the COVID-19 crisis is significantly different from that of Japan’s export restrictions. However, we must not forget the damage domestic companies suffered from Japan’s export restrictions. The SoBuJang issue is still an 'ongoing situation.'

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