Ministry of SMEs and Startups Strengthens Inter-Agency Policy Cooperation for Small Business Recovery

Gathering On-Site Feedback on Strengthening Policy Linkages for Recovery Support and Debt Adjustment

On September 25, the Ministry of SMEs and Startups announced that it held the ninth roundtable discussion on "Small Business Recovery and Safety Net Enhancement" at the Seoul Exclusive Training Center of the Small Enterprise and Market Service.

This roundtable marks the ninth session in the ongoing relay of discussions on "Small Business Recovery and Safety Net Enhancement," which began on July 30. The event was organized to strengthen policy linkages for recovery support and debt adjustment among various agencies, including the Ministry of SMEs and Startups, the Financial Services Commission, and the courts.

At the event, the Ministry of SMEs and Startups presented measures to strengthen policy linkages for recovery support and debt adjustment, and gathered feedback from small business owners and experts. The announced measures, developed in collaboration with the Financial Services Commission, the Rehabilitation Court, and private banks, aim to establish a comprehensive support system for small business recovery and to expand the fast-track program for individual rehabilitation and bankruptcy for small business owners.

First, a one-stop comprehensive support system will be established for struggling or closed small business owners, covering everything from diagnosis and debt adjustment to closure and recovery. To identify and proactively support small business owners at risk before their difficulties worsen, policy financial institutions (such as the Small Enterprise and Market Service and Korea Credit Guarantee Fund) and private banks will monitor the business conditions of small business owners with outstanding loans, provide guidance on government recovery policies, and link necessary policies from business diagnosis onward. In addition, by electronically linking the integrated support system for "financial and debt adjustment, welfare, and employment" (led by the Financial Services Commission, among others) with the recovery support system (led by the Ministry of SMEs and Startups), small business owners will be able to receive additional policy support from other agencies during the application and consultation process, with their consent, if needed. The Small Enterprise and Market Service will also operate integrated service counters at local centers, in cooperation with other agencies such as the Credit Counseling and Recovery Service, so that small business owners can receive both recovery support and debt adjustment in one place.

The existing "Fast-Track Program for Individual Rehabilitation and Bankruptcy for Small Business Owners" (agency-referred cases), which is currently operated in cooperation with the Seoul Rehabilitation Court, will be gradually expanded nationwide to support the prompt rehabilitation and bankruptcy procedures of small business owners. Since May of this year, the Ministry of SMEs and Startups and the Seoul Rehabilitation Court have been working together, with the Ministry providing expert consultations to small business owners to assist with debt analysis, repayment plan design, and preparation of application documents, while the Seoul Rehabilitation Court operates a dedicated panel to swiftly review and decide on submitted cases.

Choi Wonyoung, Director of Small Business Policy at the Ministry of SMEs and Startups, stated, "As the debt burden on small business owners is increasing, it is essential to strengthen the linkage between recovery support and debt adjustment for successful recovery." He added, "We will continue to support the successful recovery of small business owners through close cooperation with related agencies such as the Financial Services Commission and the courts."

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