"Fostering Global Innovative Companies Like the Second Samsung and Naver"

Ministry of SMEs and Startups Announces Comprehensive Plan for SME Development

Minister Park Young-sun of the Ministry of SMEs and Startups announced on the 23rd of last month at the Government Seoul Office that 'New Hope Fund' will be provided to small business owners whose sales have decreased due to the spread of COVID-19 and those facing business difficulties due to strengthened social distancing measures. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] The Ministry of SMEs and Startups presented a vision on the 6th to realize a leading digital powerhouse in the world by fostering global innovative companies. On the same day, the Ministry announced the "Comprehensive Plan for SME Development (2020-2022)" at the Cabinet meeting.

Minister Park Young-sun of the Ministry of SMEs and Startups stated, "This year, the Ministry has strived to realize a 'Great Transition to the Digital Economy, Smart Korea,' and over the next three years, based on this, we will focus on digitalizing SMEs, ventures, and small merchants to secure future national competitiveness." She added, "To overcome the current COVID-19 crisis, we will establish management and recovery safety nets for small merchants and strengthen customized support for traditional SMEs that form the backbone of our manufacturing industry, such as chimney manufacturing factories."

The Ministry identified future policy directions and tasks as ▲ promoting digitalization of SMEs, ventures, and small merchants ▲ strengthening customized support for traditional SMEs, small merchants, and traditional markets ▲ expanding recovery safety nets and protection foundations to overcome the COVID-19 crisis. To promote digitalization of SMEs, ventures, and small merchants, programs such as K-Non-face-to-face Global Innovative Venture 100, Smart Korea Fund, and K-Unicorn will continue to foster innovative growth of ventures and startups in the non-face-to-face and digital sectors. The Ministry also plans to consider enacting the "Non-face-to-face SME and Venture Promotion Act" to nurture non-face-to-face innovative ventures.

Support for digital-based manufacturing innovation such as smart factories and for small merchants vulnerable to digital transformation will also be strengthened. To revitalize traditional SMEs, small merchants, and traditional markets, the Ministry plans to actively utilize Brand K to promote overseas expansion of SMEs through non-face-to-face export support. The Ministry will also continue to discover "Caring Companies" to promote win-win cooperation between large and small enterprises and eradicate unfair trade practices.

The Ministry plans to establish a K-Live Commerce support system and promote sales channels and commercial district revitalization for small merchants and traditional markets through initiatives such as Christmas markets, Onnuri and Local Love gift certificates activation, and expansion of the Commercial District Renaissance Project.

Considering the difficult situation where sales of small merchants and traditional markets sharply declined due to the resurgence of COVID-19 since mid-August, the Ministry will newly establish and support the Small Merchant New Hope Fund, provide support for small merchant re-challenge incentives, and reduce business burdens such as rent and electricity bills for small merchants. Next year, the Ministry plans to actively implement customized support policies, including introducing a "SME Cluster Crisis Management System" to diagnose SMEs in crisis and respond promptly, and expanding emergency policy fund support for SMEs affected by COVID-19.

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