Ministry of SMEs and Startups Partners with Seoul Guarantee Insurance to Support Rebound Companies

Up to 500 Million KRW Unsecured Performance and Permit Guarantees Provided Per Company

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young) announced on the 26th that it has signed a business agreement with Seoul Guarantee Insurance (CEO Yoo Kwang-yeol). Through this agreement, companies undergoing a second leap, such as those switching to different industries from their existing ones or restarting after closure, will be provided with unsecured performance and licensing guarantees of up to 500 million KRW per company, as well as job training and credit management services.

The Ministry of SMEs and Startups and Seoul Guarantee Insurance will expand the support targets so that companies pursuing a second leap can receive commercial support services provided by Seoul Guarantee Insurance through this business agreement. They also plan to support excellent re-startup companies with high chances of success based on previous business experience, even if they had to close down inevitably. This year, a new in-depth evaluation for sincere management assessment will be introduced to select outstanding re-startup companies equipped with technological capabilities and crisis response abilities, providing preferential benefits when participating in policy funds and research and development projects.

Seoul Guarantee Insurance will provide performance guarantees necessary for the commerce of second leap companies and education and credit management services to strengthen corporate capabilities. First, through the 'SGI Edu Partner,' it will support educational services for talent development in SMEs for two years. This is an educational platform established by Seoul Guarantee Insurance that offers about 10,000 educational contents free of charge to SME employees, including job training, language, liberal arts, and mandatory education. Credit management services to improve the management structure of SMEs will also be provided free of charge for one year.

No Yong-seok, Director of SME Policy at the Ministry of SMEs and Startups, said, "Guarantee support for re-startup companies has shown steady results since its introduction in 2015, supporting unsecured guarantees worth 522.7 billion KRW for 2,431 companies as of June 2022," adding, "We will expand future cooperation with Seoul Guarantee Insurance so that failure can become a valuable asset toward success rather than a wound."

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