Ministry of SMEs and Startups Confirms 3rd Supplementary Budget of 3.6114 Trillion Won... "Promoting Non-Face-to-Face Youth Entrepreneurship"

Budget Increase to Support Young Entrepreneurs
Expansion of Financial Support Budget for Small Business Owners and Traditional Markets

Source=Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 6th that it has finalized the 3rd supplementary budget for 2020 at 3.6114 trillion won through National Assembly review.

This supplementary budget includes expanded support projects to help young people challenging entrepreneurship. A total of 10.3 billion won was increased for 'Support for Discovering Youth Startup Ideas in the Non-face-to-face Sector,' 'Open Voucher Support for Young Prospective Entrepreneurs,' and 'Startup Support Service Voucher Project.'

First, to promote youth startups in the rapidly growing non-face-to-face sector due to the impact of the novel coronavirus infection (COVID-19), 2 billion won was newly allocated to the youth startup idea discovery support project. The Ministry of SMEs and Startups plans to conduct the project in a competition format and provide mentoring for business model advancement and initial commercialization funds to outstanding young people with discovered ideas.

63 billion won was increased for open voucher support for young prospective entrepreneurs. The budget for youth support was separately increased and allocated within the existing prospective entrepreneur support project. It will allow autonomous use of startup education, startup vouchers, and management consulting within a limit of 100 million won.

Additionally, 2 billion won was increased for the startup support service voucher project, which supports costs related to tax/accounting or technology protection?areas difficult for youth startup companies?within a limit of 1 million won.

In the ongoing economic uncertainty due to the resurgence of COVID-19, the budget for financial support for small business owners was also expanded.

First, 80 billion won was additionally allocated to support local government contributions to regional credit guarantees. Contributions were made to 16 regional credit guarantee foundations to ensure stable guarantees and supply to local small business owners. Furthermore, by increasing the budget for contributions to the Korea Technology Finance Corporation, 600 billion won of new COVID-19 special guarantees will be supplied to respond to recent economic uncertainties.

An 800 million won budget for the 'Digital Manager Dispatch' project, promoted by the Ministry of SMEs and Startups to accelerate the digitalization of traditional markets, was also newly included in the supplementary budget. Digital managers will be dispatched to 38 traditional markets nationwide to assist in developing online sales channels.

The Ministry of SMEs and Startups plans to post a 'Supplementary Budget Project Manual' so that small business owners and SMEs can understand and receive support for the supplementary budget projects in detail. The manual includes support contents, announcements, and selection procedures for each supplementary budget project.

Minister Park Young-sun of the Ministry of SMEs and Startups said, "Through this supplementary budget, we will support the early overcoming of crises faced by small business owners and SMEs due to increased uncertainties such as concerns over the resurgence of COVID-19," adding, "We plan to actively support rapid responses to the acceleration of economic structural changes toward non-face-to-face and digitalization to enhance economic vitality."

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