[New Year's Address] Kwon Chil-seung "Supporting Small Business Crisis Recovery... Fostering Innovative Ventures and Startups"

Minister Kwon Chil-seung of the Ministry of SMEs and Startups / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Kwon Chil-seung, Minister of SMEs and Startups, pledged to support small business owners in overcoming crises next year while focusing on fostering ventures and startups.

In his New Year's address on the 31st, Minister Kwon said, "The spread of COVID-19 infections is not subsiding, and variables that companies must consider such as rising raw material prices, carbon neutrality, and ESG are increasing," but added, "I believe that small and medium-sized venture entrepreneurs and small business owners will overcome difficulties with their spirit of challenge, passion, quick response, and flexibility, and use this as an opportunity to make a new leap forward."

Minister Kwon stated, "First, we will support small business owners in overcoming crises and strengthening their competitiveness."

He said, "We will expand the scope and amount of loss compensation and promptly implement the largest-ever 4.6 trillion won support project for small business owners, prepared to overcome management crises and respond to digital transformation."

He continued, "We will foster innovative ventures and startups that will lead the future," adding, "We will invest 1 trillion won in the Korea Fund of Funds to create additional venture funds exceeding 2 trillion won and accelerate institutional reforms such as the introduction of multiple voting rights."

He expressed his intention to continue the entrepreneurial enthusiasm centered on new industries and youth by allocating 40% of the startup commercialization budget to new industry sectors.

Furthermore, Minister Kwon said, "We will enhance the adaptability of small and medium enterprises to environmental changes and build a growth foundation," pledging to support responses to new management environments such as ESG and transitions to new industries.

He also said, "We will continuously promote the smartization of manufacturing processes that can address productivity gaps with large corporations, decarbonization, and digitalization."

Finally, he said, "We will establish fair trade order and spread a culture of mutual growth by promoting coexistence between online platforms and small business owners and piloting a linked delivery price system."

Below is the full text of the New Year's address.

Respected small and medium venture entrepreneurs and small business owners,

The new year of 2022, Im-in year (壬寅年), has dawned.

This is the first new year I greet with you as the Minister of SMEs and Startups.

Since ancient times, when the new year arrived, people would paste a ‘Munbae-do’ painting of a tiger on the entrance or gate of their homes

to ward off evil spirits and pray for good fortune.

The black tiger symbolizing the Im-in year represents strong leadership, independence, a spirit of challenge, toughness, and passion.

Thinking of the meaning of this black tiger, I recalled you, our small and medium venture entrepreneurs and small business owners, who wisely overcome difficulties and make a new leap forward with passion and a spirit of challenge.

Looking back on 2021, we endured a very difficult time due to the COVID-19 cold wave.

Not only small business owners who must have struggled the most due to social distancing for quarantine,

but also small and medium venture entrepreneurs faced many difficulties due to rising raw material prices and logistics issues.

Despite these hardships, our small business owners actively participated in quarantine efforts,

and small and medium venture entrepreneurs showed their resilience by surpassing 5 trillion won in venture investment for the first time and achieving record-high export performance (105.8 billion dollars).

The small business community has chosen the four-character idiom Jeonho Hoorang (前虎後狼) to describe this year’s business environment.

It means that while blocking a tiger at the front door, a wolf enters through the back door.

This shows how seriously the business environment surrounding small and medium ventures and small business owners is being predicted.

The spread of COVID-19 infections is not subsiding, and variables that companies must consider such as rising raw material prices, carbon neutrality, and ESG are increasing.

However, I believe that you, our small and medium venture entrepreneurs and small business owners, as always, will overcome difficulties with your spirit of challenge, passion, quick response, and flexibility, and furthermore, use this as an opportunity to make a new leap forward.

The Ministry of SMEs and Startups will also make more policy efforts than ever before.

First, we will support small business owners in overcoming crises and strengthening their competitiveness.

We will expand the scope and amount of loss compensation so that you can receive appropriate compensation for losses due to quarantine participation, and promptly implement the largest-ever 4.6 trillion won support project for small business owners prepared to overcome management crises and respond to digital transformation.

Second, we will foster innovative ventures and startups that will lead the future.

We will invest 1 trillion won in the Korea Fund of Funds to create additional venture funds exceeding 2 trillion won and accelerate institutional reforms such as the introduction of multiple voting rights.

Also, by allocating 40% of the startup commercialization budget to new industry sectors, we will ensure that the entrepreneurial enthusiasm centered on new industries and youth continues.

Third, we will enhance the adaptability of small and medium enterprises to environmental changes and build a growth foundation.

We will support transitions to new industries such as decarbonization of high-carbon sectors, raising awareness of ESG, and expanding business conversion funds.

We will also continuously promote the smartization of manufacturing processes that can simultaneously address productivity gaps with large corporations, decarbonization, and digitalization.

Lastly, we will establish fair trade order and spread a culture of mutual growth by promoting coexistence between online platforms and small business owners and piloting a linked delivery price system.

Respected small and medium venture entrepreneurs and small business owners,

I once again wish you a vigorous year of leap forward with the energy of the tiger.

The Ministry of SMEs and Startups will be with you.

Thank you.

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