Supporting Rechallenge for Diligent Failed Businesses

Ministry of SMEs and Startups and Korea SMEs and Startups Agency Recruit Companies for In-depth Evaluation of Honest Management

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[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 7th that they are recruiting companies to participate in the 'Sincere Management In-depth Evaluation' to strengthen support for the re-challenge of excellent and sincere failed entrepreneurs.

The 'Sincere Management In-depth Evaluation' is a newly introduced system in March this year to select excellent and sincere failed entrepreneurs and link them to practical support that demanders can feel. Those who pass will receive various benefits for the re-leap of SMEs and startups, including preferential treatment for participation in government re-startup support projects.

The existing sincere management evaluation focused on violations of laws such as accounting fraud before re-startup, intentional bankruptcy, and unfair dismissal, and there were no separate preferential benefits. Reflecting the difficulties and suggestions of re-challenging entrepreneurs regarding this, preferential support and evaluation criteria have been newly established.

The 'Sincere Management In-depth Evaluation' comprehensively evaluates the sincere management efforts before and after closure and the re-challenge success capabilities of re-challenging entrepreneurs dreaming of a re-leap through a review committee composed of up to seven members, including private experts and officials from SME support organizations.

Those who pass the in-depth evaluation will be issued a certificate of excellent sincere management and receive preferential benefits such as ▲ the right to apply for a dedicated track for re-startup funds (SBC) ▲ free support for specialized education and consulting (SBC) ▲ exemption from document evaluation for the general type of the Re-challenge Success Package (Korea Institute of Startup & Entrepreneurship Development) ▲ preferential treatment in morality evaluation for re-challenge re-startup support guarantees (Korea Technology Finance Corporation) ▲ priority recommendation for linkage to the Stepping Stone project of the Startup Growth Technology Development Project (Korea Institute for Advancement of Technology).

Applicants must be companies that passed the sincere management evaluation after January 1, 2021, and applications can be submitted at any time on the Re-challenge Comprehensive Support Center website. Choi Hak-su, Head of Innovation Growth Headquarters at SBC, said, "We will continuously strengthen the re-challenge support system in collaboration with the government and related organizations to improve the awareness of sincere failed entrepreneurs and create an environment for successful re-challenge," adding, "We will spare no support to promote the re-leap of excellent sincere failed entrepreneurs, create good jobs, and support innovative growth."

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