Next Year's Jungjin Fund 11 Trillion Won... 13.6% Increase from This Year

Small and Medium Business Corporation
Government Proposal for Small and Medium Business Startup and Promotion Fund
SME Policy Fund 5.69 Trillion Won

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation announced on the 3rd that the 2021 budget for the 'Small and Medium Business Startup and Promotion Fund (Jungjin Fund)' has been allocated at 10.949 trillion won, an increase of 1.315 trillion won (13.6%) compared to this year, according to the government proposal.

Next year, policy funds for the management stabilization and innovative growth of small and medium enterprises (SMEs) in the post-COVID-19 era will be supported at a scale of 5.69 trillion won. This is an increase of 1.1 trillion won compared to 4.59 trillion won this year.

The new growth foundation fund, which supports the innovative growth of regional SMEs and the digitalization of manufacturing sites, has been increased by 420 billion won to 1.75 trillion won compared to this year. Specifically, the innovation growth support fund and the manufacturing site smartization fund increased by 320 billion won and 100 billion won, respectively.

The Small and Medium Business Corporation newly allocated 4.4 billion won for the smart factory post-management project budget. Based on the analysis of on-site difficulties of companies that have adopted smart factories, it plans to support consulting and customized after-services, and link policy funds to enhance the operational efficiency of smart factories.

Additionally, to strengthen the effectiveness of policy fund support, the corporate diagnosis budget was increased by 800 million won to 5.1 billion won to promote the resolution of on-site difficulties and customized linked support. The facility investment promotion budget was secured at 3.1 billion won, an additional 1.3 billion won, expanding the support scope for appraisal and mortgage registration costs for facility investment up to 70%.

Next year's new market entry support fund is set at 500 billion won, an increase of 300 billion won. This supports SMEs in responding to changes in the global supply chain in the post-COVID-19 era and recovering export levels to those before the outbreak of COVID-19.

Specifically, the domestic company export company fund is allocated 150 billion won, and the export company global company fund 350 billion won. These are increases of 100 billion won and 200 billion won respectively compared to this year.

The Small and Medium Business Corporation expanded the overseas base budget to 31.1 billion won and strengthened non-face-to-face online support using export incubators. To overcome management crises of SMEs and strengthen response capabilities to industrial structure reorganization, the emergency management stabilization fund was significantly increased by 400 billion won to 500 billion won. The re-leap support fund was expanded by 140 billion won to 350 billion won.

Also, a new budget of 1.8 billion won was allocated for the SME proactive structural improvement project to support liquidity supply, debt adjustment, and interest rate reduction. The business conversion promotion budget of 1.1 billion won was reflected, aiming to lay the foundation for management normalization and re-leap through autonomous structural improvement of SMEs.

The Small and Medium Business Corporation plans to expand the training project budget by 6.6 billion won to 26.1 billion won to foster SME workforce and build a smart innovation learning platform. It allocated 10 billion won to the Corporate Workforce Difficulty Center to actively support job creation through the introduction of matching programs for SMEs building smart factories by age group.

Kim Hak-do, Chairman of the Small and Medium Business Corporation, said, "Together with government ministries such as the Ministry of SMEs and Startups and the Ministry of Strategy and Finance, we will accelerate the innovative growth of regional SMEs and the digitalization of manufacturing sites, actively respond to changes in the global supply chain, and support export recovery." He added, "We will also take the lead in establishing a social safety net to overcome management crises of SMEs due to industrial structure reorganization in the post-COVID-19 era."

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