"Protecting Startup Companies"... Gyeongbuk Province Implements 'Special Measures' Mandating Purchase of Startup Company Products

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] Gyeongsangbuk-do has stepped up to support young companies and early-stage startups facing existential threats due to the novel coronavirus infection (COVID-19).

On the 28th, it announced that a portion of the department heads' discretionary expenses would be used to purchase products from young and early-stage startup companies, and that souvenirs and promotional items used by the province and its funded and affiliated institutions would also be mandatorily purchased internally.

Prior to this announcement, Governor Lee Cheol-woo led by example. On the 26th, at the 'Let's Run Together, Gyeongbuk' relay campaign held in Gyeongsan City, he made bulk purchases of products from young and early-stage startups such as Happy House's herbal blended tea, Nature & Rich's garlic and pomegranate processed goods, and Garam of Nature's functional cosmetics. These products will be used to promote Gyeongbuk's young and startup companies in the future.

Gyeongsangbuk-do plans to increase the survival rate of these companies through the Young and Startup Company Revitalization Project, externally establishing the image of 'Gyeongbuk as a great place to start a business,' and to continuously create jobs centered on startup companies in the mid to long term.

Governor Lee Cheol-woo stated, "Young companies and startups are like sprouts that will support the future regional economy. However, COVID-19 is causing the most vulnerable sprout companies to collapse first," adding, "Going forward, we will lead the participation of cities and counties in saving sprout companies and foster a culture that the entire Republic of Korea can join together in."

Meanwhile, according to the Korea Federation of Small and Medium Business, 52% of small business owners nationwide close their businesses within three years. In Gyeongsangbuk-do's own survey, 77% of young entrepreneurs have not reached the break-even point.

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