'Stop Local Extinction'... Ministry of SMEs selects 13 projects to support regional small businesses

The Ministry of SMEs and Startups announced on the 2nd that it has selected 13 outstanding projects after evaluating the ‘2023 Regional Enterprise Innovation Contest for Responding to Local Extinction,’ conducted jointly with the Ministry of the Interior and Safety.

This contest was held to effectively respond to local extinction and realize a true local era. Local governments proposed projects aimed at creating local jobs through fostering and settling regional enterprises, and the Ministry of SMEs and Startups and the Ministry of the Interior and Safety linked corporate support projects with the Local Extinction Response Fund to provide support. This initiative was launched for the first time this year.

Local governments selected for the contest will receive preferential points when the Ministry of the Interior and Safety allocates the ‘Local Extinction Response Fund.’ Additionally, they will receive extra support from the Ministry of SMEs and Startups’ regional projects and policy funds.

From March 10 to April 14, 23 projects were submitted by 28 local governments (including collaborative local governments) from population-declining and interest areas. Through two rounds of evaluation, 13 projects submitted by 16 local governments (14 basic local governments and 2 metropolitan local governments), including Goesan-gun in Chungbuk, Buyeo-gun in Chungnam, and Hampyeong-gun in Jeonnam, were finally selected for support.

Goesan-gun proposed the project ‘Establishment of a Hanji Cultural Industry Economic Zone.’ Utilizing the Local Extinction Response Fund from the Ministry of the Interior and Safety, they plan to expand a factory for mass production of Hanji (traditional Korean paper) and support enterprises through the Ministry of SMEs and Startups’ programs in product development, production and sales network establishment, design improvement, and premium marketing strategies. This will create new jobs within the region.

Buyeo-gun put forward ‘Smart Farm Structure Advancement’ as its project strategy. By using the Local Extinction Response Fund from the Ministry of the Interior and Safety to establish a smart farm complex, the Ministry of SMEs and Startups will provide agricultural corporations with consulting on agricultural product processing technology and prototype production. They will also support the advancement of business structures so that companies can create their own brands (products) using crops they cultivate directly.

Hampyeong-gun proposed ‘Comprehensive Revamp of Haebomyeon Agricultural and Industrial Complex’ as its project strategy. With the Local Extinction Response Fund from the Ministry of the Interior and Safety, they plan to expand the Haebomyeon Agricultural and Industrial Complex and improve residential conditions for workers by creating neighborhood parks and apartment complexes through local government funds and private investment. Companies residing in the agricultural and industrial complex will receive investment attraction subsidies, prototype production, and funding through local government and Ministry of SMEs and Startups projects, thereby creating jobs for young people.

The 13 selected projects will receive approximately 5 billion KRW each from the Local Extinction Response Fund and about 1.1 billion KRW each from the Ministry of SMEs and Startups’ regional enterprise support projects, totaling around 80 billion KRW in support.

Furthermore, the Ministry of SMEs and Startups plans to provide consulting to local governments by June to help establish investment plans for the Local Extinction Response Fund, ensuring that the selected projects proceed according to their original strategies. At the end of this month, a memorandum of understanding (MOU) will be signed with the 16 selected local governments to support the settlement and fostering of regional enterprises.

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