Comprehensive Reform of the 'Re-entrepreneur Diligent Management Evaluation System'

Creating a Practical Environment for Recovery

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) announced on the 15th that it will completely overhaul and implement the 'Sincere Management Evaluation System' introduced to support the re-challenge of failed entrepreneurs.

There have been continuous calls for the sincere management evaluation to play a greater role in creating a practical environment for re-challenge due to environmental changes caused by COVID-19. Accordingly, the Ministry listened to the opinions of re-startup entrepreneurs and related organizations for several months and expanded and reorganized the functions of the sincere management evaluation system.

Major Revision Details

First, a 'deep evaluation' involving private sector judges will be introduced to strengthen support benefits for excellent sincere re-challenge entrepreneurs. The evaluation system is divided into two stages, and among those who pass the simplified first stage, a deep evaluation comprehensively reviewing efforts for sincere management before closure and re-challenge capabilities will be conducted for those who wish. Through this, re-startup education and consulting will be provided on an ongoing basis, and preferential treatment will be given in the selection of re-startup support projects.

The method where multiple organizations conducted separate evaluations will be changed to a dedicated institution evaluation to enhance consistency. The Ministry designated the Small and Medium Business Corporation, which has the highest support ratio considering operation period and budget size among re-startup support institutions, as the dedicated institution for sincere management evaluation, and plans to operate the system consistently.

An always-open application system will also be introduced. Currently, sincere management evaluation was only available when applying for re-startup support projects, limiting its continuous use. It will be reorganized into an online always-open application and evaluation system so that any re-starter wishing to re-challenge can easily use it. Lee Ha-nyeong, head of the Ministry's Re-challenge Policy Division, said, "We will continue to improve the system so that the sincere management evaluation system can alleviate the difficulties of re-challenge caused by the stigma of failure even a little."

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