Ministry of SMEs and Startups and Korea SMEs and Startups Agency Activate Emergency Response System for Disaster-Affected Small and Medium Venture Enterprises

Operation of Disaster Support Task Force... Emergency Management Stabilization Fund Support in Case of Damage Occurrence

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, 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 28th that they are operating an emergency response system to quickly support disaster-affected SMEs and startups.

The Ministry and SBC have established a joint response system with related organizations to prepare for damages caused by natural disasters such as heavy rains during the monsoon season and typhoons, as well as social disasters like fires, and have been operating a "Disaster Support Task Force." According to the disaster support plan, SBC has set up a Disaster Support Task Force at its headquarters to receive and report disaster-related situations in real time, and operates on-site mobile teams at 33 regional headquarters and branches. The three regional management support offices deploy emergency support experts called Ambulance Men to oversee disaster response at the regional level.

SMEs and startups affected by disasters or calamities can receive emergency management stabilization funds to cover recovery costs. The loan has a fixed interest rate of 1.9% per annum with a limit of up to 1 billion KRW per company, and the loan period is 5 years (2 years grace period and 3 years installment repayment). SBC plans to minimize damage and ease the financial burden on companies struggling to repay interest through measures such as loan repayment deferrals. SMEs and startups wishing to apply for policy fund loans must report the damage and submit a disaster confirmation certificate issued by the relevant local government to SBC.

Chairman Kim Hak-do stated, "Over the past four years, SBC has supported 35.2 billion KRW in emergency management stabilization funds to 352 SMEs affected by heavy rains, typhoons, fires, and other disasters," adding, "We will continue to make every effort to support the rapid recovery and management stabilization of disaster-affected SMEs and startups through close cooperation with related organizations."

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