Jungjingong Improves 'Rehabilitation Application Requirements'... "Support Industries Also Expanded"

Participation in the Simplified Corporate Rehabilitation Program Possible Even After Filing for Rehabilitation

Panorama of the Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation announced on the 29th that it has improved the application requirements and expanded the scope of support to help companies facing management difficulties and companies applying for rehabilitation due to the novel coronavirus infection (COVID-19) to recover.

Previously, companies undergoing simplified rehabilitation could only apply for consulting before filing for rehabilitation, but the Small and Medium Business Corporation has improved the application requirements so that business applications and participation are possible even after filing for rehabilitation.

The simplified rehabilitation system was established to allow business operators with debts of 5 billion KRW or less to recover quickly at a lower cost compared to the general rehabilitation process. The average period from filing for rehabilitation to approval decision is about 180 days. Corporate rehabilitation consulting is a project that helps companies in crisis to quickly normalize management and efficiently rehabilitate, supporting costs up to 30 million KRW.

Additionally, the Small and Medium Business Corporation will expand the support targets, which were previously limited to small enterprises in certain industries such as manufacturing, services, and information and communication under the Enforcement Decree of the Framework Act on Small and Medium Enterprises, to most industries. Support will be available to all small and medium enterprises regardless of size, thereby expanding support for rehabilitating companies.

The Small and Medium Business Corporation plans to encourage strengthening corporate competitiveness by expanding policy fund linkage support for companies participating in career path consulting. Furthermore, through system reform, the scope of supported industries has been expanded and applications are now possible for all small and medium enterprises regardless of company size.

Career path consulting is a project that provides customized expert prescriptions to companies facing management difficulties, companies wishing to reorganize or rehabilitate their business, and companies considering their career path, presenting directions for structural improvement and overcoming crises.

Kim Hakdo, Director of the Small and Medium Business Corporation, said, "This system reform will serve as a stepping stone for revitalizing the recovery of small and medium venture companies facing management difficulties due to COVID-19," adding, "We will continue to support through linking various projects of the Small and Medium Business Corporation and help the successful recovery of small and medium enterprises based on cooperation with related organizations."

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