Kwon Chil-seung "Strengthening Win-Win Cooperation Centered on Large and Medium Enterprises' ESG... Considering 'Ultra-Low Interest Rates' for Small Business Owners"

Minister of SMEs Holds Press Briefing on the 1st
"0.1% Loan Case During Gangwon Wildfire"
Youth and Senior Startup Measures Underway

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups plans to launch the first model of 'Caring Companies 2.0,' a win-win cooperation between large corporations and small and medium-sized enterprises (SMEs), within this month.

On the 1st, Minister Kwon Chil-seung held his first press briefing since taking office at the Government Seoul Office and stated, "We will reorganize into 'Caring Companies 2.0' in a way that allows SMEs and small business owners to genuinely experience voluntary win-win cooperation."

The 'Caring Companies' program, led by the Ministry of SMEs and Startups, refers to 'voluntary win-win cooperation companies' that share their capabilities, strengths, and know-how with small business owners and self-employed individuals. Since May 2019, the ministry has been selecting Caring Companies, including Emart, Market Kurly, and Woowa Brothers.

Minister Kwon said, "By mid-April, we will promote the first model of Caring Companies 2.0 with large corporations that can practically support SMEs and small business owners in carbon neutrality and ESG."

He added, "ESG is an important item for coexistence, where SMEs and large corporations live together to respond to the changed environment. In the era of Caring Companies 2.0, we intend to prioritize and promote ESG."

Minister Kwon also announced that he would consider a 'super ultra-low interest rate (tentative name)' loan plan for small business owners.

He said, "We plan to review a super ultra-low interest rate (tentative name) loan plan, including interest-free loans, mainly through policy financial institutions for small business owners to alleviate their burdens such as rent as much as possible."

Minister Kwon explained, "The super ultra-low interest rate loan plan will require persuasion and consensus. There was also a case of using a 0.1% loan interest rate during the wildfire in Gangwon Province."

Regarding the Serious Accidents Punishment Act scheduled to be enforced in January next year, he said, "The Ministry of SMEs and Startups expressed many opinions during the law-making process, and the parts applied to small business owners and self-employed individuals have been significantly weakened compared to the original draft."

Minister Kwon stated, "If regulations are strengthened to a level that SMEs cannot absorb in a short period while conducting business activities, we will express our opinions to the National Assembly and government to ensure they are reflected," but he also left room for limitations by saying, "However, there may be limits."

Additionally, the Ministry of SMEs and Startups is preparing a three-year startup policy plan and measures for youth and senior entrepreneurship to continue the momentum of the 'Second Venture Boom.'

Minister Kwon explained, "I believe the Ministry of SMEs and Startups should take the lead in resolving the job mismatch occurring in SMEs. The major theme of youth entrepreneurship is to enable young people with innovative technologies and ideas to actively engage in the venture industry."

He continued, "The essence of innovation is technology, but innovation does not occur well in large corporations. I think youth entrepreneurship through ventures should become an important policy theme that our country must lead."

Meanwhile, Minister Kwon reiterated that retroactive application is practically difficult regarding the 'Small Business Loss Compensation System' bill. He said, "About 22 bills related to loss compensation have been submitted to the National Assembly. Opinions vary within the National Assembly, but the government has somewhat organized its stance."

He added, "If retroactive application is made, confusion is expected in the future. It is practically impossible to quantify how much loss compensation is needed. It would be faster to support damages already incurred through damage support methods."

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