Implementation of Diligent Management Evaluation for Rehabilitating Small and Medium Enterprises

Business Closure History Preliminary Re-entrepreneurs and Re-entrepreneurs Within 7 Years of Business Operation
Eligibility for Restart Support Projects and Tax Special Cases Granted Upon Confirmation of Faithful Management

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 30th that they will operate the Honest Management Evaluation project to improve awareness of diligent failed entrepreneurs and support their re-challenge.

The target of the Honest Management Evaluation is prospective re-entrepreneurs with a history of business closure or re-entrepreneurs within 7 years of business operation. It evaluates whether the business was managed diligently without past fraudulent accounting, intentional default, unfair dismissal, etc., and uses this to select candidates for financial support.

Those who pass the Honest Management Evaluation will be issued a Certificate of Honest Management. They will also be eligible to apply for Ministry-supported re-challenge support projects such as ▲Re-startup funds (SBC) ▲Re-challenge Success Package (Korea Institute of Startup & Entrepreneurship Development) ▲Re-startup funds and Credit Recovery Committee (KODIT, KIBO) ▲Startup Growth Technology Development Project (Korea Technology and Information Promotion Agency for SMEs), as well as tax benefits for re-challenge entrepreneurs and in-depth honest management evaluation.

The in-depth Honest Management Evaluation is a newly established stage to expand support for honest managers. A review committee including private experts comprehensively evaluates efforts in honest management and re-challenge success capabilities. Those who pass will be issued an Excellent Honest Manager Certificate and provided with re-startup education and consulting. They will also receive preferential treatment when participating in re-challenge support projects such as a dedicated track for re-startup funds, exemption from document evaluation for the Re-challenge Success Package, and priority recommendation for research and development (R&D).

Previously, in the field, there has been a continuous demand for changes in perception toward failed entrepreneurs and effective re-challenge support. The Ministry collected various field opinions and completely revamped and implemented the Honest Management Evaluation in March. Additionally, to operate the project efficiently, SBC was designated as the dedicated agency for the Honest Management Evaluation.

As the dedicated agency, SBC opened the Honest Management Evaluation Center and assigned dedicated personnel to ensure smooth operations. They also improved policy accessibility and customer convenience by renovating the Re-challenge Comprehensive Support Center website to provide online continuous application, progress inquiry, and certificate issuance services.

Chairman Kim Hak-do said, "By unifying the Honest Management Evaluation, which was previously conducted by each institution, under SBC, we have secured speed and consistency in the evaluation." He added, "SBC will continue to strengthen its functions as the dedicated agency for re-challenge support by providing education and mentoring for honest managers and linking support policies with other institutions, faithfully fulfilling its role as the gateway for supporting re-challenge entrepreneurs."

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