Jungjingong, Additional 300 Billion KRW Support for SME Policy Funds

Additional Budget Secured for Support Targeting Startups Less Than 7 Years Old Through 2nd Supplementary Budget

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 28th that they have secured an additional 300 billion KRW through the second supplementary budget and will work to strengthen the competitiveness of startup companies and resolve difficulties faced by manufacturing SMEs struggling with soaring raw material prices.

Following the passage of the second supplementary budget bill in the National Assembly plenary session on the 24th, SBC secured an additional 300 billion KRW in policy fund budgets, including 50 billion KRW for youth-exclusive startup funds. As a result, the total budget for SME policy funds this year has expanded from 5.61 trillion KRW to 5.91 trillion KRW.

First, SBC will provide startup foundation support funds targeting SMEs with less than seven years of business experience or individuals starting SMEs to promote startup activation. A separate 50 billion KRW youth-exclusive startup fund has been allocated for SMEs with representatives aged 39 or younger and less than three years of business experience.

Additionally, to help alleviate difficulties faced by manufacturing SMEs due to recent soaring raw material prices, the scope of policy fund support has been expanded. Manufacturing SMEs with raw material purchase plans within six months have been added as eligible recipients for emergency management stabilization funds and innovation growth support funds, allowing them to apply for policy funds. Raw material purchase plans are verified through purchase orders or quotations.

Kim Hak-do, Chairman of SBC, stated, "This is a time when timely support of SME policy funds is necessary to strengthen the competitiveness of startup companies and stabilize raw material supply." He added, "We will continue to closely monitor market conditions to ensure that no blind spots occur in policy support and will make every effort to secure budgets and provide support."

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