Ministry of SMEs and Startups - Korea SMEs and Startups Agency Establish Rapid Support System for Disaster-Affected SMEs

Operation of Disaster Support Task Force... Emergency Management Stabilization Fund Support for Damage Recovery

Small and Medium Business Corporation

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, 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 15th that they are operating an emergency support system to quickly assist disaster-affected SMEs and startups.

The Ministry and SBC have established a joint emergency support system and are operating a "Disaster Support Task Force" to prepare for damages caused by natural disasters such as heavy rains during the monsoon season, typhoons, and social disasters such as fires.

SBC has set up a Disaster Support Task Force at its headquarters to establish support plans for disaster-affected SMEs and to receive and report disaster-related situations in real time, while operating on-site mobile teams at 32 regional branches. The three regional management support offices oversee disaster response at the regional level, including dispatching emergency support personnel.

SMEs and startups affected by disasters can receive emergency management stabilization funds to cover recovery costs. The loan limit is up to 1 billion KRW per company, with an interest rate of 1.9% per annum and a loan period of 5 years (2 years grace period, 3 years installment repayment). SBC plans to minimize damage and ease the financial burden on companies struggling to repay interest through measures such as loan repayment deferrals.

Additionally, to provide rapid support, "ambulance men," who are on-site emergency support experts, are deployed to assess the damage situation, and the fast-track review system is actively utilized. The plan is to match ambulance men with affected companies and connect them with support projects from related organizations that help with quick business normalization beyond policy funds.

Companies wishing to apply for policy fund loans should report the damage to the competent administrative agency and submit a disaster confirmation certificate issued by the relevant local government to SBC.

Chairman Kim Hak-do said, "Special attention is required for facility damage at SME sites in preparation for heavy rains and typhoons during the monsoon season," and added, "SBC will proactively support disaster-affected SMEs and startups to complete damage recovery in a short period through organic cooperation with local governments and related organizations."

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