Jungjingong Partners with Private Expert Organizations to Support SME Business Transformation and M&A

Korea Venture Capital Association, Samil Accounting Corporation, Korea M&A Association, and Venture Business Association Sign Business Agreement
Establishing Collaborative System to Promote SME M&A Linked with Business Transformation Support

Kim Hak-do, President of the Small and Medium Business Corporation, is being interviewed by Asia Economy on the 5th. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Heeyoon] The Small and Medium Business Corporation (SBC) announced on the 25th that it has signed a business agreement with the Korea Venture Capital Association, Samil Accounting Corporation, Korea M&A Association, and Venture Business Association to support the activation of mergers and acquisitions (M&A) of small and medium-sized enterprises (SMEs).

This agreement was conducted in a non-face-to-face manner by exchanging the agreement documents in writing as part of social distancing measures.

Through this business agreement, the parties agreed to join forces to secure new growth engines by activating M&A of SMEs, actively discover SME demand, and prepare comprehensive support policies.

SBC will support M&A companies entering new business fields recommended by the partner organizations with business transition funds, consulting, export, and technology development. Companies entering new business fields are those that switch or add new industries, and after SBC’s approval of the business transition plan, policy funds can be supported for five years.

Additionally, the M&A Support Center plans to establish a cooperative system to support successful M&A of SMEs by discovering corporate demand and providing investment linkage, accounting and tax consulting, and practical training tailored to each institution’s characteristics.

The existing business transition support project lacked management and nurturing measures for voluntary M&A progress. However, with this agreement, the scope of business transition plan approval and linked support will expand to the M&A field, and a collaborative system linked with the M&A activation project will be established, expecting to revitalize SME restructuring.

Chairman Kim Hakdo said, “While global companies actively engage in M&A, the domestic M&A market has a low success rate due to liquidity supply limitations,” and added, “SBC will collaborate with private specialized institutions to support proactive business transitions and competitiveness of M&A companies with excellent growth strategies.”

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