'Bill Introduced to Extend Support for Small and Medium Enterprises Affected by COVID-19'

Rep. Lee Jong-bae Proposes Amendment to the Small and Medium Enterprise Startup Support Act

A bill has been introduced to extend the support period for startups and small and medium-sized enterprises (SMEs) during disaster situations such as COVID-19.

On the 12th, Lee Jong-bae, a member of the People Power Party, announced that he has taken the lead in proposing the "Partial Amendment to the Small and Medium Enterprise Startup Support Act," which includes provisions to calculate the period of damage caused by national disasters such as infectious disease outbreaks and extend the support period accordingly.

A citizen is undergoing a test at the temporary screening clinic at Seoul Station. Photo by Hyunmin Kim kimhyun81@

Startups and SMEs affected by COVID-19 are currently excluded from support because more than seven years have passed since they started their business. Under the current law, the requirements for startups, re-startups, and early-stage startups are defined as companies that have not exceeded seven years from the date of business commencement for startups and re-startups, and three years for early-stage startups. Additionally, SMEs founded based on new industries are included in the support programs for up to 10 years from the date of business commencement, considering their contribution to the national economy.

The problem is that due to a significant decrease in investment in startups caused by COVID-19, growth has been delayed, and even those several years past their business commencement date are struggling to become self-sufficient. Lee’s office explained, "In this regard, opinions have been raised on the need to extend the support period for startups affected by infectious diseases and other factors."

Regarding the purpose of the bill, Lee stated, "This is to support startups in recovering from damages caused not only by COVID-19 but also by future disasters, enabling them to become driving forces for national economic growth and job creation," and emphasized, "The government must actively support companies that have endured difficult times so that they can continue to grow."

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