Jungjingong Expands Support for Youth-Exclusive Startup Funds for Regional Key Industry Companies
160 Billion KRW Youth-Exclusive Startup Fund in 2021... 2.0% Fixed Interest Rate Support
[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 11th that they will provide youth-exclusive startup funds to early-stage startups that possess excellent technology and business potential but lack financial resources.
The youth-exclusive startup fund selects support recipients by publicly reviewing the business plans of young entrepreneurs, unlike general financial institutions that evaluate a company's collateral, credit rating, and financial status, to activate startups among the youth with outstanding ideas. Selected companies receive not only funding for commercialization but also one-stop support linked with mentoring and other services.
In particular, SBC has raised the loan limit for youth-exclusive startup funds from 100 million KRW to 200 million KRW this year for companies engaged in regional key industries. This aims to promote regional balanced New Deal and support the success of government policies. The funding limit is up to 200 million KRW for manufacturing companies and those engaged in regional key industries, and up to 100 million KRW for others. Eligible applicants are prospective entrepreneurs or SMEs established less than three years ago with a representative aged 39 or younger, and the interest rate is a fixed 2.0%.
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The support process includes fund application and reception, preliminary mentoring, public review and selection by the Youth Startup Support Committee, intensive mentoring, loan disbursement, and post-support linkage. SBC plans to support about 1,700 companies with 160 billion KRW this year. Last year, 1,691 companies received 160 billion KRW in youth-exclusive startup funds, creating 1,598 jobs as of the end of November. Lee Soo-hyung, head of SBC’s Startup Support Division, stated, "We have expanded the support limit for youth companies engaged in regional key industries to promote regional balanced development," adding, "We will continue to support them to grow into companies leading the Korean New Deal through follow-up support such as mentoring after funding."
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