"Growing SMEs in Non-Capital Regions"… 'Regional Small and Medium Enterprise Act' to Take Effect in January Next Year

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The government has established a legal basis to implement various policies supporting and fostering small and medium-sized enterprises (SMEs) located outside the metropolitan area. Through this, it aims to revitalize regional industries and local economies and support the Korean New Deal.

The Ministry of SMEs and Startups announced that the bill for the "Act on the Promotion and Innovation of Regional SMEs (Regional SMEs Act)" passed the Cabinet meeting on the 20th. The Regional SMEs Act is expected to be enforced six months after its promulgation, following the establishment of subordinate laws such as enforcement ordinances, scheduled for January next year.

An official from the Ministry of SMEs and Startups explained, "Recently, the economic and policy environment has changed with balanced development and regional balanced New Deal initiatives. To support the Korean New Deal, it was necessary to reflect the voices from the field emphasizing the leading role of regional SMEs, leading to the establishment of a separate legal framework."

First, new systems such as "Regional Innovation Leading Companies" and "Smart Innovation Zones" will be introduced targeting SMEs outside the metropolitan area. Companies with excellent innovation capabilities and growth potential will be selected as Regional Innovation Leading Companies and provided with financial and fiscal support as well as overseas expansion consulting.

The Smart Innovation Zone is a system designed to promote the recovery of underdeveloped SME-dense areas by providing various special benefits, attracting companies, and supporting infrastructure installation and operation. In the second half of this year, two Smart Innovation Zones will be selected to support the construction of smart platforms that can be jointly used by regional SMEs.

A crisis response system will also be established to conduct continuous monitoring of crisis indicators and provide emergency support for SME-dense areas such as industrial complexes. Until now, support for crises in dense areas was provided retrospectively through designations like special support areas for SMEs, but going forward, proactive responses to regional crises will be possible.

Kim Seong-seop, Director of Regional Enterprise Policy at the Ministry of SMEs and Startups, stated, "Based on the Regional SMEs Act, the government and local governments will work together to systematically foster SMEs and do their best to help regional innovative companies grow into global enterprises."

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