"Policy Fund Non-Face-to-Face Consultation and Loans"... Kim Hak-do's 100 Days in Office

Chairman of the Small and Medium Business Corporation
Presents 3 Major Management Innovation Directions
Digital Consultation and Reception Desk from Second Half of This Year
Overhaul of Consultation and Loan Agreement Process by 2022

Kim Hak-do, President of the Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] "By 2022, we plan to fully implement a non-face-to-face system throughout the entire process from policy fund consultation to loan agreement."

Kim Hak-do, President of the Small and Medium Business Corporation (SBC), announced this on the 26th, marking his 100th day in office, while presenting three major management innovation directions to respond to the post-COVID-19 era. It is expected that once the policy fund support system is reorganized into a non-face-to-face method, service quality can be greatly improved by shortening processing times and reducing customers' time and spatial burdens.

President Kim emphasized, "Starting in the second half of this year, we plan to strengthen digital capabilities by introducing digital consultation and reception windows, and by advancing an AI-based evaluation system utilizing financial and non-financial data."

From Consultation to Loan Agreement Non-Face-to-Face
Shortened Processing Time and Reduced Spatial Burden

Non-face-to-face Policy Fund Process (Data provided by Small and Medium Business Corporation)

Since his inauguration in May this year, President Kim has communicated with entrepreneurs and experts at local sites at least once a week. He also gathered opinions from internal staff regarding SBC’s projects and organizational innovation directions to enhance the concreteness and feasibility of innovation plans that small and medium enterprises can feel.

President Kim stated, "SBC will take the lead in the smartization and digital transformation of small and medium enterprises in the post-COVID-19 era, invigorate regional innovative growth as a core axis of the Korean New Deal and balanced national development, and actively support small and medium enterprises to overcome management crises during industrial structural paradigm shifts by establishing a social safety net."

The three major management innovation directions promoted by President Kim are 'Digital Innovation,' 'Regional Industry Innovation,' and 'Social Safety Net Innovation.' Ten key tasks have also been selected, including a full reorganization of the policy fund support system into a non-face-to-face method, one-stop support for regulatory free zones to boost regional vitality, and proactive restructuring support centered on small and medium enterprises.

To promote digital manufacturing innovation for small and medium enterprises, SBC plans to train 60,000 professionals to operate smart factories by 2022. To overcome the global economic downturn caused by COVID-19 and the limitations of face-to-face export support projects, SBC will also promote domestic and international e-commerce platform linkage and an online export living lab project.

Consultation and Export Contracts Online
Training 10,000 AI and Big Data Experts

Kim Hak-do, President of the Small and Medium Business Corporation

Additionally, the training program for enhancing job skills of employees in small and medium enterprises will be reorganized to focus on new industries and smart learning, aiming to train 10,000 experts in AI and big data fields by 2025.

President Kim said, "Starting early next month with domestic Gmarket and Japan’s Qoo10 Japan, we plan to list products from 1,000 companies annually on global platforms to support online exports as a fast track. We will also newly promote an online export living lab project that supports the entire process from one-on-one video consultations to export contracts using SBC’s overseas bases."

SBC will participate as a new dedicated agency in the regulatory free zone project for regional innovative growth and balanced development, providing one-stop support from zone designation to post-management.

To support commercialization and infrastructure construction for companies participating in the zones, separate policy funds will be prepared, and export marketing and manpower projects will be linked and supported. By 2024, it is expected to contribute to the government’s regulatory free zone achievements, including KRW 1.5 trillion in sales, creation of about 4,500 jobs, and attraction of about 180 companies.

Regulatory Free Zone Designation and Post-Management
Regional Industry Revitalization and Social Safety Net Establishment

Source=Small and Medium Business Corporation

Furthermore, 300 small and medium enterprises with high growth potential in innovative growth sectors will be discovered at a rate of 100 per year. Through relay-style linked support, they will be nurtured into representative regional companies.

President Kim said, "If promising youth startups located in the metropolitan area wish, we will support their relocation and growth in non-metropolitan areas linked to regional specialized industries. Through subsidies and other means, we plan to lead regional industry revitalization by creating about 5,500 jobs over the next three years."

SBC will strengthen its role as a social safety net. It plans to expand the supply of emergency management stabilization funds and re-challenge support funds that assist business restructuring in consultation with the government. In the prolonged COVID-19 situation with ongoing economic uncertainty, SBC will implement the 'Autonomous Restructuring Program' within the year to prevent bankruptcy of technologically excellent small and medium enterprises and will also promote cooperation with private financial sectors.

Participating companies in the program will receive comprehensive financial support, including liquidity supply, debt adjustment, and interest rate reduction. This is expected to provide small and medium enterprises with opportunities for management normalization and re-challenge through autonomous restructuring before entering legal procedures such as workout or corporate rehabilitation.

President Kim said, "SBC’s management innovation plan includes many challenging goals that require cooperation with government ministries and related organizations. Through continuous discussions and organic collaboration, we will create visible results in policy support such as the Korean New Deal and actively support small and medium enterprises to become the main players of the national economy leading the post-COVID-19 era."

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