Support for Business Normalization Begins in Stagnant Areas Dense with SMEs and Small Merchants

Complete Overhaul of the "Special Support Areas for Small and Medium Enterprises" System

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced that it will fully revamp the 'Special Support Areas for SMEs' system, which supports the business normalization of regions densely populated with small and medium-sized enterprises (SMEs) and small business owners affected by economic stagnation, and implement it starting from the 25th.

The Special Support Areas for SMEs system is designed to enable the government to swiftly and systematically support overcoming crises when they occur in areas densely populated with SMEs and small business owners, such as industrial complexes, due to changes in local economic conditions.

Through this revision, areas experiencing crises due to industrial decline, relocation or restructuring of large-scale enterprises, disasters, etc., can be designated as Special Support Areas for SMEs, and the designated areas have been expanded beyond existing industrial complexes to include industrial zones, traditional markets, shopping districts, and other areas densely populated with SMEs and small business owners. Previously, the designation criteria were limited to industrial complexes in cities or provinces with significantly poor industrial concentration and industrial production performance, which raised concerns about limitations in addressing damages in SME and small business owner-dense areas affected by large-scale enterprise relocations, restructuring, or disasters.

By expanding and revising the Special Support Areas for SMEs system this time, the blind spots in supporting SMEs and small business owners to overcome crises have been resolved. Designated special support areas will receive various programs such as funding, research and development (R&D), commercialization, and marketing through consultations with expert groups. Additionally, in the revised special support areas, crisis recovery plans will be established based on advice from experts across various fields, and business centers for companies will be set up in local technoparks to provide various support measures such as preferential funding, dedicated R&D, business diversification, and marketing.

Special support areas can be designated upon application by the governors of the cities or provinces where the crisis has occurred. A local SME management environment survey team, composed of government officials from related ministries and experts, will investigate changes in the management environment of SMEs and small business owners within the area, the degree of local economic stagnation, etc., and decide on the designation and support contents in consultation with related ministries.

Kim Seong-seop, Director of Regional Enterprise Policy at the Ministry, said, "With this system revision, regions suffering economic stagnation due to COVID-19 and other factors are expected to have opportunities for business normalization and revival as they are designated as special support areas," adding, "We plan to establish a close cooperative system not only with related ministries but also with the relevant local governments to provide institutional support for areas densely populated with SMEs and small business owners, as well as to link support with future urban regeneration projects, smart modernization of underdeveloped industrial areas, and shared facility construction projects."

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