Jungjingong-IBK, Business Agreement to Support SME Management Normalization

Policy Projects and Financial Institution Linkage
Support for Business Normalization Focused on Structural Improvement

Proactive Autonomous Restructuring Improvement Program by the Korea SMEs and Startups Agency. Graphic provided by the Korea SMEs and Startups Agency.

[Asia Economy Reporter Kim Heeyoon] The Small and Medium Business Corporation (SBC) announced on the 18th that it has signed a "Proactive Voluntary Restructuring Program Joint Support Business Agreement" with Industrial Bank of Korea (IBK).

The Proactive Voluntary Restructuring Program is a new initiative in which SBC and financial institutions cooperate to support restructuring procedures for small and medium-sized enterprises (SMEs) at risk of insolvency, helping them quickly normalize management and providing opportunities for a fresh start.

Through this agreement, SBC and IBK have agreed to actively collaborate in supporting the restructuring of small and medium venture companies with high potential for normalization by linking policy projects and financial support.

The business agreement includes ▲ identifying companies eligible for proactive restructuring support ▲ establishing and implementing restructuring plans ▲ linking support with policy projects such as consulting, export, and sales channels.

SBC plans to support up to 30 million KRW, covering up to 90% of the costs for establishing restructuring plans, including new fund supply, financial structure improvement, and self-rescue plans. IBK will provide comprehensive financial programs such as recommending target companies, interest rate reductions, and maturity extensions.

Choi Haksoo, Head of Innovation Growth Division at SBC, said, "Due to the prolonged COVID-19 pandemic, it is expected that companies will face limitations in overcoming management crises through self-rescue efforts, which led to the introduction of this support model. Based on close mutual cooperation with financial institutions, we will support restructuring procedures in a package form to facilitate rapid management normalization."

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