Ministry of SMEs and Startups Holds the 1st SME Financial Support Committee Meeting

[Asia Economy Reporter Donghyun Choi] The Ministry of SMEs and Startups announced on the 26th that it held this year's first 'SME Financial Support Committee' at Kookmin Bank.

Minister Kwon Chil-seung of the Ministry of SMEs and Startups attended the meeting to review the financial situation ahead of the Lunar New Year holiday and discuss this year's financial support plans for small business owners and SMEs. The committee included Yoon Jong-won, President of IBK Industrial Bank of Korea; Bang Moon-kyu, President of Export-Import Bank of Korea; Lee Jae-geun, President of KB Kookmin Bank; Kwon Kwang-seok, President of Woori Bank; Park Sung-ho, President of Hana Bank; Kwon Joon-hak, President of NH Nonghyup Bank; and Jin Ok-dong, President of Shinhan Bank. Also present were heads of SME-related associations such as the Korea Federation of SMEs, and heads of policy financial institutions including the Korea SMEs and Startups Agency, Small Enterprise and Market Service, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Korea Credit Guarantee Foundation.

At this meeting, follow-up measures on agenda items discussed at last year's Financial Support Committee were shared, and the results of a recent survey on financial difficulties faced by SMEs conducted by the Korea Federation of SMEs were reported.

In addition, the committee reviewed the banking sector's financial support plans for SMEs in conjunction with the Lunar New Year holiday and discussed this year's policy financial support plans for SMEs and small business owners as agenda items.

The banking sector plans to supply a total of 308 trillion KRW in financing this year. Of this, 236.5 trillion KRW will be allocated to SMEs and small business owners. In particular, support will continue to normalize the management difficulties of small business owners caused by COVID-19, provide loan limit and interest rate benefits based on ESG (Environmental, Social, and Governance) evaluation results, offer ESG management consulting, and expand credit scale in the long term to strengthen support for ESG management of SMEs.

Policy financial institutions (Korea SMEs and Startups Agency, Korea Technology Finance Corporation, Small Enterprise and Market Service, Regional Credit Guarantee Foundations, Korea Credit Guarantee Fund, and Korea Trade Insurance Corporation) announced plans to supply a total of 189 trillion KRW to SMEs and small business owners this year. They agreed to focus support on areas such as the Korean New Deal to secure future growth engines and support innovative growth, and to make efforts to resolve difficulties arising from the prolonged COVID-19 pandemic and supply chain restructuring.

Minister Kwon Chil-seung of the Ministry of SMEs and Startups stated, “Ahead of the Lunar New Year holiday, when demand for funds is high, I hope the financial sector will strive to smoothly supply funds so that SMEs and small business owners do not face difficulties securing necessary funds.” He added, “It is necessary to consider special contribution programs for small business owners so that the banking sector can be a path together when SMEs and small business owners face hardships.”

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