The 2021 Chungnam Keyword is 'Organic Growth'

Expansion of Support for Small Businesses and SMEs... Increasing Local Currency to 1 Trillion Won

Chungcheongnam-do has decided to focus its 2021 economic policy on preparing for the 'post-COVID-19' era. Building on the achievements made during this year's response to the economic crisis caused by the novel coronavirus infection (COVID-19), next year the province plans to concentrate administrative efforts on establishing a self-sustaining growth foundation for small business owners and SMEs, stabilizing jobs, and creating future growth engines. In particular, policies will be promoted to significantly expand support for SMEs and small business owners to overcome the crisis caused by COVID-19 and lay the groundwork for new growth.

On the 18th, Chungcheongnam-do announced that stimulating the economy through support for small business owners and SMEs has been set as one of the key economic tasks for next year. Considering that small business owners and SMEs suffered the greatest economic impact due to COVID-19 this year, the strategy is to go beyond temporary relief from difficulties and build a self-sustaining growth foundation to be able to respond to future crises.

◆Expansion of Financial Support for Small Business Owners and SMEs = First, financial support for SMEs will increase from 550 billion KRW this year to 570 billion KRW next year. Of this, 340 billion KRW in management stabilization funds will be allocated as 150 billion KRW for small business owners, 170 billion KRW for manufacturing and technology innovation companies, and 15 billion KRW for venture startups. Corporate development funds of 230 billion KRW will be used as 90 billion KRW for startups and competitiveness enhancement, 130 billion KRW for fostering innovative companies, and 10 billion KRW for corporate rehabilitation.

Support for employment insurance premiums for self-employed workers will expand from 900 to 1,000 people. This program supports up to 30% of the monthly employment insurance premiums for self-employed individuals employing fewer than 10 workers who are enrolled in employment insurance, for a maximum of three years.

◆Issuance of 1 Trillion KRW in Local Currency = Support will also be expanded to increase sales for small business owners. The issuance scale of local currency to revitalize local commercial districts will increase from 645.3 billion KRW this year to 1 trillion KRW. This means the amount usable at local small business stores will increase by 55%. Chungcheongnam-do plans to actively promote local currency activation through a 10% discount campaign and mobile easy payment methods.

Additionally, to help local small business owners prepare for the resurgence of COVID-19 and the activation of contactless consumption, support will be provided to secure online sales channels. Education will be provided on operating online shopping malls, product photography, design production practice, and online marketing. Pilot stores called 'Antenna Shops' will be installed in multi-use facilities such as railway stations and highway rest areas for product testing. Mobile health checkup clinics will also be operated for small business owners who find it difficult to leave their workplaces.

To strengthen the welfare of SME workers and resolve labor market polarization, a 'Joint Labor Welfare Fund' will be established and operated. A new support project for export logistics costs for SMEs will be launched next year to alleviate the management burden caused by increased warehouse storage fees and logistics costs due to COVID-19. In addition, Chungcheongnam-do has presented key economic tasks for next year including establishing an emergency regional economic response and support system, maintaining employment and creating jobs for vulnerable groups, revitalizing private investment and exports, securing future growth engines for the post-COVID-19 era, responding to changes in consumption patterns, and activating private consumption.

Kim Yong-chan, Deputy Governor of Chungcheongnam-do, emphasized, "We will do our best to maintain the momentum of economic recovery through comprehensive responses in employment, investment, consumption, and exports," adding, "While proactively responding to employment crises amid changes in industrial structure, we will also accelerate securing future growth engines through regional balanced New Deal projects and innovation cities in preparation for the post-COVID-19 era."

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