Jungjingong to Support 160 Billion KRW This Year with Proactive Autonomous Restructuring Program

459 Companies Applied by October This Year
Expansion of Collaboration Banks and Private Financial Support

The Small and Medium Business Corporation (Chairman Kang Seok-jin, hereinafter referred to as SBC) announced on the 13th that, as of the end of October this year, it has provided policy funds amounting to 48 billion KRW in loans to 127 small and medium-sized enterprises through the proactive autonomous restructuring program and has induced support worth 112 billion KRW from private financial institutions.

The SBC proactive autonomous restructuring program is a project that actively discovers and supports companies experiencing temporary management difficulties but with good growth potential. It has signed agreements with 10 banks, including the five major commercial banks (Kookmin, Nonghyup, Shinhan, Woori, Hana) and policy banks (Korea Development Bank, Industrial Bank of Korea), to provide linked support to SMEs in crisis.

Companies selected for the proactive autonomous restructuring program receive support for establishing management improvement plans for business normalization, as well as financial support such as new loans and maturity extensions from policy funds and private financial institutions. Additionally, through monitoring the implementation of the established management improvement plans, they can receive follow-up support such as additional funding and maturity extensions of existing loans.

Since its introduction in 2020, the SBC proactive autonomous restructuring program has seen a continuous increase in application demand. In particular, as of the end of October this year, 459 companies applied, doubling compared to the same period last year. In response to the increased demand, SBC plans to allocate additional policy fund budgets and focus on helping SMEs overcome liquidity crises by the end of the year.

Chairman Kang Seok-jin of SBC stated, "Through the proactive autonomous restructuring program, SBC has taken the lead in normalizing the management of SMEs in crisis in response to the SME complex crisis recovery support policy announced by the government last January," adding, "We will continue to closely identify the difficulties and policy demands of small and medium-sized entrepreneurs and continuously promote collaboration with private financial institutions to reflect this as an effective support project."

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