Up to 500 Million KRW Support for Entrepreneurial Small Business Growth at Each Development Stage

Ministry of SMEs and Startups Announces Policy to Foster Entrepreneurial Small Businesses
Up to 500 Million KRW in Policy Funds for Private Investments
'Raikon' Branding Signifies Innovation in Local Areas

Entrepreneurial small business owners are defined as companies that create new added value through 'manufacturing foundation and service innovation' in lifestyle culture sectors such as clothing, food, and housing. They are estimated to number around 3 million. The government plans to nurture entrepreneurial small business owners through different growth stages and support their global expansion. Policy funds of up to 500 million KRW will also be provided. Branding under the name 'LICORN companies' will be promoted as well.

[Image source=Yonhap News]

On the 16th, the Ministry of SMEs and Startups announced the ‘Entrepreneurial Small Business Owner Development Plan’ policy at Yeonnamjang in Seoul, focusing on these points. This plan differs from existing policies in that it is designed not just for protection or support but for fostering growth. Notably, it includes the introduction of a 'private pre-investment linked matching loan,' which provides policy funds of up to 500 million KRW when private investment is made. The aim is to support everything from idea discovery to business model advancement and expansion.

Alongside this, branding as 'LICORN,' meaning a unicorn company driving innovation locally, will be promoted. LICORN stands for 'Lifestyle & Local Innovation uniCORN.' Additionally, the policy includes various initiatives such as ▲ mandatory minor coursework in lifestyle industry majors at universities ▲ operation of artisan schools ▲ establishment of innovation hub spaces for small business owners ▲ promotion of commercial district startups centered on local creators ▲ introduction of a commercial district planner system led by private innovators ▲ securing private funds through diverse investment methods including investment fund formation, business rights investment, and equity conversion contracts.

Following the policy announcement, a talk show was held where success stories of entrepreneurial small business owners such as Boksundoga, Dore Dore, Samjin Fish Cake, and Jaeju Sanghoe were shared, and discussions on the necessity of the policy took place with Minister Lee Young of the Ministry of SMEs and Startups. Minister Lee stated, “Alongside technology-centered startup and venture policies, the Ministry of SMEs and Startups will work together to newly nurture entrepreneurial small business owners in lifestyle and local sectors that enhance the value of our lives, so that they can revitalize regions and become brands that expand globally.”

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