Ministry of SMEs and Startups Allocates 4 Trillion Won Budget for Digital Transformation and COVID-19 Recovery of Small Businesses

Ministry of SMEs and Startups Announces '2021 Integrated Notice for Small Business Support Projects'

Small Business New Hope Fund On-site Application Center. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] Next year, a government budget of 4.02 trillion KRW will be allocated to support small business owners in overcoming management crises and promoting digital transformation.

The Ministry of SMEs and Startups announced on the 30th that it will issue an integrated announcement for the "2021 Small Business Support Project." The project budget was set at a record high, increasing by 1.5194 trillion KRW compared to this year.

This announcement includes the support targets, contents, and implementation schedules for a total of 22 projects such as digital transformation support for small business owners, policy fund loans, startup education, market access support, and business recovery support.

First, to help small business owners struggling due to the prolonged COVID-19 pandemic, the Ministry of SMEs and Startups will expand policy loans by establishing a special management stabilization fund for small business owners worth 1.1 trillion KRW. The Hope Return Package project, which alleviates the burden of business closure and supports rapid business recovery, will receive 69.1 billion KRW. A new budget of 12 billion KRW has been established to cover part of the commercialization costs required for specialized item development and business method improvements for small business owners switching industries or restarting businesses. Employment insurance premiums will be supported for micro one-person small business owners to encourage enrollment in employment insurance for self-employed individuals and to expand the social safety net.

Small Business Policy Funds. Table = Provided by the Ministry of SMEs and Startups

Support for digital transformation of small business owners will also be strengthened. A budget of 51.4 billion KRW has been allocated for the distribution of smart stores and smart workshops. The smart superstores, piloted in five locations this year, are planned to expand to 800 nationwide next year. The support targets for small business owners’ digital market entry will be expanded, and 76.2 billion KRW will be provided for new projects such as building smart flagship stores and operating subscription economy models. A new "Smart Small Business Support Fund" worth 300 billion KRW will be established to build smart stores and workshops.

Support for management innovation of small business owners will also be expanded. A new budget of 5.8 billion KRW will be provided for facility improvements and market access for "Baeknyeon Gage" and "Baeknyeon Sogongin" businesses. Additionally, 6.7 billion KRW will be invested to improve the working environment of small manufacturers.

Three new New Business Startup Academies will be established to nurture around 500 prospective small business entrepreneurs, and 18.9 billion KRW will be provided to outstanding trainees. A budget of 10.8 billion KRW has also been allocated for online management improvement education.

Detailed project announcements containing support conditions and contents are expected to be released in January next year. Information on the integrated announcement and subsequent project announcements can be checked later through the Ministry of SMEs and Startups and the Small Enterprise and Market Service.

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