"Enhancing Competitiveness of Local SMEs... Government and Local Governments Provide Coordinated Support"

Passage of Enforcement Decree for Regional Small and Medium Business Promotion Act on 18th
Selection of Regional Innovation Leading Companies... Support for up to 6 Years
Establishment of Crisis Response Center... Continuous Monitoring of Crisis Signs

[Asia Economy Reporter Kim Bo-kyung] The government has finalized detailed plans to nurture and support small and medium-sized enterprises (SMEs) located in local areas. To innovate local SMEs, a cooperative system among the government, local governments, and support organizations will be established, and SMEs with innovative capabilities will be selected as 'Regional Innovation Leading Companies' and supported for up to six years.

The Ministry of SMEs and Startups announced that the enforcement decree of the Act on the Promotion and Innovation of Local SMEs (Local SMEs Promotion Act) was passed at the Cabinet meeting on the 18th.

Until now, local SME policies have not been recognized as independent policies, and the importance of local SMEs as key players in the regional economy has been undervalued.

Recently, with the full-scale promotion of national balanced development, the Korean New Deal, and regional balanced New Deal policies, a consensus has formed on the need to secure the growth and competitiveness of local SMEs.

As a result, the Local SMEs Promotion Act was enacted in July last year, redefining the framework for local SME support policies. Ahead of the enforcement of the Local SMEs Promotion Act on the 28th, the enforcement decree containing delegated matters and necessary details for implementation was approved.

The enforcement decree newly stipulates the operation of the Local SME Policy Council and Support Council according to the regional policy direction centered on local SMEs, fostering regional innovation leading companies, designating smart innovation zones, and establishing a regional crisis response system.

The Policy Council legalizes a cooperative system so that the government, local governments, and local SME support organizations can organically and continuously collaborate for the growth and innovation of local SMEs.

A Support Council will be formed centered on the local Small and Medium Venture Business Administration, allowing the sharing and consultation of regional issues among the relevant provinces, special administrative agencies, the Small Enterprise and Market Service, and other local support organizations.

Fourteen metropolitan cities and provinces outside the capital area will directly select local SMEs with innovative capabilities as 'Regional Innovation Leading Companies' and provide focused support such as technology development and commercialization funds together with the government for up to six years. The selection and support procedures have been specified.

To ensure comprehensive support for local SMEs without blind spots, the term 'SME-dense areas' has been defined as urban-type small business clusters, new technology startup clusters, and similar zones.

Provisions necessary for operating systems to overcome crises and revitalize local SMEs, such as creating 'Intelligent (Smart) Innovation Zones' centered on SME-dense areas and designating 'Special Support Areas for SMEs,' have been established.

In addition to post-crisis management systems like special support area designation, a system to proactively and stepwise respond to crises faced by local SMEs has been prepared through this enforcement decree.

'Regional SME Crisis Response Centers' will be established at local SME support organizations such as regional technoparks, and a continuous monitoring system for crisis signs in SME-dense areas will be built.

Furthermore, the decree includes necessary matters to systematically support local SMEs, such as conducting local SME surveys, building regional information systems, and designating specialized research and dedicated institutions.

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