Minister Lee Young's First Meeting with Financial Services Commission Chairman: "Supporting Smooth Landing for Small Business Owners and SMEs"

Lee Young, Minister of SMEs and Startups

[Asia Economy Reporter Donghyun Choi] On the 29th, Lee Young, Minister of the Ministry of SMEs and Startups, held his first meeting with Kim Joo-hyun, Chairman of the Financial Services Commission, to discuss financial support measures for small business owners and SMEs.

Minister Lee met with Chairman Kim in the afternoon at the Bankers' Hall. The two leaders agreed to proactively prepare multifaceted supplementary measures to ensure that self-employed individuals and small business owners do not face difficulties as the deadline for the maturity extension and repayment deferral measures approaches at the end of September.

Currently, the maturity extension and repayment deferral measures are being implemented not only by private financial companies such as banks but also by policy financial institutions under the Ministry of SMEs and Startups and the Financial Services Commission. Accordingly, the Ministry of SMEs and Startups, Korea Technology Finance Corporation, and Korea Credit Guarantee Fund Central Association will also participate in the "Consultative Body for the Smooth Landing of Maturity Extension and Repayment Deferral." This consultative body was jointly formed on the 22nd by the Financial Services Commission, Financial Supervisory Service, and policy financial institutions.

With the Ministry of SMEs and Startups joining the consultative body, it is expected that more in-depth discussions will take place on ▲individual financial companies' borrower-specific action plans for maturity extension and repayment deferral being autonomously prepared ▲joint financial sector support measures for smooth landing in areas where individual financial companies' efforts alone are insufficient ▲and the seamless implementation of supplementary budget projects related to small business support prepared through bipartisan agreement. Furthermore, institutional and policy measures are expected to be organically linked.

The Ministry of SMEs and Startups and the Financial Services Commission are currently promoting programs for self-employed individuals and small business owners based on the supplementary budget passed by the National Assembly in May. Recently, various linked programs have been expanded, such as providing additional interest rate benefits from the Industrial Bank of Korea and the Financial Services Commission to small business owners who received consulting from the Small Enterprise and Market Service and the Ministry of SMEs and Startups.

Additionally, the two ministries have agreed to strengthen non-financial support such as consulting, as well as financial support, to help self-employed individuals and small business owners enhance their self-reliance and business competitiveness.

Moreover, plans will be made to conduct an in-depth review of management and financial difficulties faced by SMEs and to prepare measures to alleviate these challenges.

A Ministry of SMEs and Startups official stated, "SMEs are facing increasing difficulties due to rising raw material prices, labor shortages, and interest rate hikes, and they also need to respond to industrial structural changes such as carbon neutrality and digital transformation. The Ministry of SMEs and Startups and the Financial Services Commission plan to join forces to proactively prepare comprehensive support measures."

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