Ministry of SMEs and Startups Launches 760 Billion KRW Support Program for Small Business Owners

Alleviating Management Burdens for Small Business Owners

The Ministry of SMEs and Startups will implement support programs for small business owners.

On the 2nd, the Ministry announced that it will carry out the "2024 Integrated Announcement of Small Business Support Programs" worth a total of 760.2 billion KRW.

Comprising a total of 18 projects, this support program focuses on three main goals: ▲ alleviating the management burden on small business owners facing high interest rates and high inflation ▲ fostering entrepreneurial small business owners with differentiated products and innovative ideas ▲ strengthening the digital capabilities and infrastructure of small business owners.

This year, the budget to ease the management burden on small business owners has been expanded, including the temporary establishment of the "Special Electricity Fee Support for Small Business Owners" and an increase in support for "Employment Insurance Premiums for Self-Employed."

[Image source=Yonhap News]

Alleviating Management Burden on Small Business Owners

In response to last year's electricity rate hikes, the Ministry will establish a new "Special Electricity Fee Support for Small Business Owners" worth 250 billion KRW to reduce the increased energy cost burden. Considering sales and other factors, the program plans to support micro small business owners who are heavily affected by energy costs with up to 200,000 KRW per person in electricity fee support.

The budget for employment insurance premium support for self-employed workers, included in the "Small Business Management Support 3-Pack" which covers energy, finance, and insurance fees, has been tripled compared to last year. Additionally, the "Hope Return Package," which supports rapid recovery of small business owners through a package covering management crisis improvement, safe closure, reemployment, and re-startup, has had its budget increased by 5 billion KRW, and the target for store demolition cost support will be expanded by 10%.

Fostering Entrepreneurial Small Business Owners

The Ministry has branded the New Business Startup Academy, which comprehensively supports all stages from idea discovery to concretization and realization for prospective small business owners moving toward startup, as "Lycon Town," and plans to expand the number of trainees by 10% this year.

To promote management innovation and resolve management difficulties for small business owners, customized education and consulting using experts will be provided. Starting this year, a pilot "Mentoring Service" will be introduced, where successful senior entrepreneurs pass on their skills and know-how.

Furthermore, the support scale for "Local Creators," which fosters outstanding local small business owners to secure unique competitiveness by combining local culture, characteristics, and business ideas, will increase from 120 teams last year to 220 teams this year. The "Local Brand Creation" project, which connects human and material assets to create competitive brands unique to neighborhood commercial districts, will be actively promoted starting this year.

Private investment and financing will be linked and supported through programs such as "Our Neighborhood Crowd Funding," which encourages funding from local residents, and "Private Investment-Linked Matching Loans," which provides policy funds together with private investments to small business owners.

Strengthening Digital Capabilities of Small Business Owners

This year, the Ministry plans to disseminate digital technologies to approximately 8,000 small business sites and workshops nationwide.

About 400 "Future Smart Stores," which support serving robots and table orders, will be introduced this year. Additionally, 400 "Cluster-Type Smart Workshops," which establish a cooperative system among local small manufacturers to realize economies of scale, will be built.

The budget to support small business owners' online market entry has also been expanded, and all processes necessary for global expansion will be supported as a package to help expand sales channels targeting overseas markets.

Minister Oh Young-joo of the Ministry of SMEs and Startups stated, "We will continue support programs without neglect for the 7.33 million small business owners so that they can overcome difficult economic conditions and firmly establish themselves as key players in the Korean economy, from alleviating management burdens to advancing as entrepreneurial small business owners."

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