Establishment of 'Corporate Risk Response TF' for Proactive Measures Against Complex Crisis Signs

Plan to Establish Proactive Response Measures for Each Risk Factor

Joo Joo-hyun, Vice Minister of the Ministry of SMEs and Startups, is delivering a welcoming speech at the kickoff meeting of the Corporate Risk Response Task Force held on the 29th at the Korea Technology and Information Promotion Agency for SMEs in Yeouido, Seoul.

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) announced on the 29th that it has recently established a 'Corporate Risk Response Task Force' to diagnose the risks faced by small and medium-sized enterprises (SMEs) and small business owners amid increasing domestic and international uncertainties and to take proactive measures accordingly.

According to the Ministry, global inflationary pressures are intensifying worldwide, including the continued rise in international oil and raw material prices due to the Ukraine crisis. In May, inflation in major countries such as the United States and the Eurozone exceeded market expectations with a sharp increase, and domestic inflation also recorded 5.4% in May, with upward pressure continuing.

These inflationary pressures have triggered not only the U.S. giant step but also an increase in the domestic base interest rate, which could exacerbate difficulties in the recovery of SMEs and small business owners. For example, the July business outlook index announced by the Korea Federation of SMEs fell 4.6 points from the previous month to 81.5, marking a decline for two consecutive months and an expanded rate of decline compared to the previous month.

In response, the Ministry explained that it has established the 'Corporate Risk Response Task Force,' led by the Vice Minister, for swift action. At the kickoff meeting held that day, trends and risks for major policy targets were reviewed, and a consensus was reached on the current situation of SMEs and small business owners and the necessity of response measures.

Vice Minister Cho Joo-hyun stated at the meeting, "Due to the recent increase in domestic and international uncertainties, a complex crisis situation of prolonged high inflation and economic slowdown is expected to continue for a considerable period, and accordingly, difficulties for SMEs and small business owners are also expected to intensify." He emphasized, "We must closely maintain the corporate risk response system and thoroughly implement proactive inspections, diagnoses, and customized support for on-site difficulties in SME sectors expected to face challenges."

The 'Corporate Risk Response Task Force,' which will be held weekly going forward, plans to review risks by SME-related sectors such as finance, export and sales channels, labor and workforce, business startups and closures, and small business owners, and to seek proactive response measures.

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