Jungjinkong Supports SME Voluntary Structural Improvement Together with the Private Sector

Preemptive Autonomous Structural Improvement Program Policy Council Meeting Held

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 3rd that it will launch and operate a policy council involving both the public and private sectors to establish a successful institutional foundation for the proactive autonomous restructuring program.

SBC explained that the policy council is organized and operated to enhance the efficiency of program operation and strengthen communication functions between the government and the private sector. The policy council consists of a total of seven members, including five private experts such as university professors, lawyers, and accountants.

The policy council reviews the annual business plan and operational performance of the proactive restructuring program and discusses institutional improvement measures and development directions. It holds regular meetings twice a year and convenes extraordinary meetings when major economic issues arise. The first 'Proactive Autonomous Restructuring Program Policy Council' was held remotely to observe social distancing.

The proactive autonomous restructuring program is a project in which SBC and financial institutions cooperate to support restructuring procedures for small and medium enterprises at risk of insolvency, thereby helping rapid business normalization and providing opportunities for a new leap forward. SBC piloted and operated the proactive autonomous restructuring program last year. In September, it signed a business agreement with IBK Industrial Bank to establish a cooperative foundation for liquidity supply and maturity extension to support restructuring. Differentiated from existing restructuring systems, it achieved results by supporting 1.5 billion KRW to 15 companies.

This year, based on the improvements identified during the pilot operation, SBC plans to start full-scale support from February. Choi Hak-su, Head of Innovation Growth Division at SBC, said, "The proactive autonomous restructuring program is a model that satisfies both companies and creditors," adding, "We will cooperate with private experts to stabilize the program early and support the rapid business normalization of small and medium enterprises."

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