Ministry of SMEs and Startups Establishes Joint On-Site Support Team for Heavy Rainfall

One-Stop Recovery Support for Damage Reporting and Disaster Fund Application

Source: Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups will establish a 'Joint On-site Support Team' to assist small and medium-sized enterprises (SMEs) and small business owners affected by the heavy rains. This will enable affected SMEs and small business owners to complete damage reporting, verification, and disaster fund applications through a one-stop recovery support process.

According to the Ministry on the 11th, an emergency inspection meeting was held the previous day involving the headquarters, 12 regional SME offices, the Small and Medium Business Corporation, and the Small Enterprise and Market Service, among other affiliated organizations, to implement additional support measures.

Additional support measures have been prepared for SMEs and small business owners in seven cities and counties declared special disaster areas on the 7th, including seriously affected areas in Naju and Gurye in Jeonnam Province, and Hadong County in Gyeongnam Province. In particular, to expedite damage recovery, a Joint On-site Support Team composed of local governments, regional offices, the Small and Medium Business Corporation, the Small Enterprise and Market Service, and regional credit guarantee foundations will be established and operated to simplify the disaster fund application process.

Furthermore, 'General Support Teams' and 'Dedicated Support Centers' established within regional offices and related agencies in the special disaster areas will be additionally set up at the Jeonnam Regional Office, Gyeongnam Regional Office, and regional headquarters of related agencies to assist affected companies with their difficulties.

To support traditional markets damaged by the heavy rains, cooperation will be established with Samsung Electronics and LG Electronics. Inspection and repair services will be provided for home appliances damaged by flooding. Through the Small Enterprise and Market Service and merchant associations, damage status of home appliances will be identified, and if reported to the local service centers, inspections and repairs can be received.

Stores within traditional markets will receive benefits such as free on-site repair services and parts discounts from Samsung Electronics and LG Electronics for home appliance damages caused by the recent heavy rains.

The Ministry of SMEs and Startups plans to prioritize the budget for the 'Traditional Market Facility Modernization Project' to restore facilities in the affected areas in close cooperation with local governments. For Gurye Market, which urgently requires emergency restoration due to severe flood damage, a 'Recovery Support Team' composed of employees from the Gwangju and Jeonnam offices, affiliated organizations, and volunteers was formed on the 11th and deployed for restoration work.

The Ministry will increase the special guarantee ratio for SMEs in special disaster areas from 85% to 90%, offer preferential guarantee fees (from 0.5% to 0.1%, applying a fixed guarantee fee rate), and expand guarantee limits (working capital and facility funds from 300 million KRW to 500 million KRW for working capital, and facility funds within the required amount). Guarantees maturing will be fully extended, and loans will be supported up to 1 billion KRW per affected company at an interest rate of 1.9% to facilitate rapid recovery.

For small business owners, the special guarantee ratio will be increased from 85% to 100%, guarantee fees preferentially reduced (from 0.5% to 0.1%, applying a fixed guarantee fee rate), and the guarantee amount will be expanded up to 200 million KRW regardless of the existing guarantee amount.

Additionally, preferential support will be provided by lowering the loan interest rate for small business policy funds (emergency management stabilization funds) from 2.0% to 1.5%, and extending the repayment period (from 2 years grace and 3 years repayment to 3 years grace and 4 years repayment).

The scope of loan support will also be expanded to include some industries previously excluded from policy fund loans, such as healthcare, veterinary services, legal services, accounting and tax-related services, appraisal services, traditional Korean medicine pharmacies, and pharmacies.

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