Jungjinkong Expands 'New Growth Foundation Fund' to Support SMEs with Over 7 Years of Business Experience

Small and Medium Business Corporation

Panorama of the Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation (SBC) is increasing the budget for the 'New Growth Foundation Fund.' Considering the facility investment demands of companies with more than 7 years of operation, it is providing policy financing support to help these companies expand their scale.

According to SBC on the 17th, the proportion of support for companies with over 7 years of operation has been increasing annually: 40.0% in 2018, 46.0% in 2019, and 46.5% as of September this year. In particular, considering the facility investment demands of companies with over 7 years of operation, the budget for the New Growth Foundation Fund was increased by 450 billion KRW compared to the previous year, expanding the related budget this year.

The budget for the New Growth Foundation Fund increased from 880 billion KRW last year to 1.33 trillion KRW this year. Next year's budget for the New Growth Foundation Fund is planned to be around 1.75 trillion KRW.

SBC operates policy fund support projects according to the stages of company growth (startup-growth-rejump). For startup companies with less than 7 years of operation, 'Startup Foundation Fund' is provided, while other companies are mainly supported through the New Growth Foundation Fund. SBC plans to continue efforts to negotiate with government authorities to further expand the budget for the New Growth Foundation Fund in the future.

SBC also plans to expand support for 'Scale-up Finance' to ensure the sustainable growth of companies. This is to broadly support direct financial funding for small and medium enterprises that find it difficult to issue corporate bonds based on their own credit, without being limited to specific sectors.

An SBC official said, "We will continue to improve support systems so that small and medium enterprises struggling due to COVID-19 can overcome management crises."

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