Support Basis Established for Local Governments as Main Agents in Fostering Regional SMEs

Promulgation of the Amendment to the Act on Fostering and Promoting Innovation of Local Small and Medium Enterprises

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young) announced on the 3rd that the amendment to the "Act on the Promotion and Innovation of Local SMEs" (hereinafter referred to as the Local SMEs Act), which provides administrative and financial support grounds for local governments and entities related to fostering and innovating local SMEs, has been promulgated.

The "Local SMEs Act" was enacted on July 27, 2021, to systematically foster local SMEs and has been enforced since January 28 of last year along with the enforcement decree of the Local SMEs Act, which prepares delegated matters in the law to promote local policies centered on local SMEs. The recent amendment added the provision that "local governments may provide administrative and financial support to entities related to fostering and innovating local SMEs to promote the growth and innovation of local SMEs."

Kim Woo-jung, Director of Local Enterprise Policy at the Ministry of SMEs and Startups, said, "With this amendment to the Local SMEs Act, support from local governments will be provided to institutions active in the region for the innovation of local SMEs, thereby expanding the foundation for promoting innovation in local SMEs. We expect that systematic promotion of policies for fostering local SMEs will become possible."

The Ministry of SMEs and Startups plans to seek systematic support measures for local governments and entities related to fostering and innovating local SMEs in line with the enforcement of the amended Local SMEs Act.

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