"Early Warning Signs to Be Assessed Before Closure"... Small Business Recovery Measures Announced

Small Business Recovery and Safety Net Strengthening Meeting
Monitoring Three Million Small Business Owners
Strengthening Institutional Networks for One-Stop Services
Reducing the Burden of Closure and Expanding Support

The Ministry of SMEs and Startups will proactively assess signs of financial distress among three million small business owners and provide support to help them recover.

Hansung-sook, Minister of the Ministry of SMEs and Startups, is performing with participants at the "10th Small Business Recovery and Safety Net Strengthening Meeting" held on the 15th at the SME DMC Tower in Mapo-gu, Seoul. Ministry of SMEs and Startups

On October 15, the Ministry held the 10th meeting for "Small Business Recovery and Safety Net Strengthening" at the SME DMC Tower in Mapo-gu, Seoul, where it announced support measures centered on this initiative.

First, the Ministry will monitor financial risks for approximately three million small business owners and provide early support to those showing warning signs. Policy financial institutions such as the Small Enterprise and Market Service, along with private banks, will jointly establish a "crisis signal alarm model" and offer management diagnostics both online and offline. Based on these diagnostics, tailored policy guidance will be provided according to each business's situation.

For small business owners facing insolvency or closure, the Ministry will strengthen the network among relevant institutions to provide one-stop services. The "finance and debt adjustment-welfare-employment system" of the Financial Services Commission and the "closure and restart support system" of the Ministry will be linked to expand comprehensive support. If financial or debt adjustment is deemed necessary, information will be shared with the Korea Inclusive Finance Agency and the Credit Counseling & Recovery Service to enhance debt counseling and financial support. Cooperation with the courts for personal rehabilitation and bankruptcy procedures will also be strengthened.

Measures will be implemented to reduce the burden of business closure and provide even greater support for selected entrepreneurs seeking to restart. The support limit for store demolition costs will be raised, and immediate repayment of policy funds upon closure will be deferred. The repayment period for low-interest special guarantees will be extended to up to 15 years, and specialized psychological counseling programs for closed small business owners will also be expanded.

In cooperation with organizations such as the Korea SMEs and Startups Agency, large-scale matching days will be arranged between local SMEs experiencing labor shortages and small business owners who have closed their businesses. For those who find employment after closing their business and remain in their new jobs, the repayment period for policy funds from the Small Enterprise and Market Service will be extended.

Additionally, various safety nets for small business owners will be expanded, including: ▲ increased support for employment insurance premiums ▲ tax burden relief for early withdrawal from the Yellow Umbrella Mutual Aid Fund ▲ higher contribution limits for the mutual aid program ▲ detailed criteria for disaster recovery support for small business owners affected by flooding. Financial support for diligent repayers will also be implemented.

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