SME Support Programs to Become More Accessible with AI-Based Platform Transformation

Announcement of the "Improvement Plan for the SME Support System"

On November 4, the Ministry of SMEs and Startups announced at the Industrial Competitiveness Enhancement Ministers' Meeting the launch of a demand-driven, AI-based "Improvement Plan for the SME Support System." This initiative was developed by gathering feedback from the industry and relevant organizations through on-site meetings with SMEs and policy consultations with public institutions supporting SMEs.

The main directions of the plan are: ▲ Establishment of an integrated support platform for SMEs ▲ Provision of AI-based customized services ▲ Reduction of paperwork burden through digitalization ▲ Blocking of unjust third-party intervention, such as illegal brokers ▲ Strengthening the selection of innovative companies based on market and AI analysis. To begin with, the two major platforms providing information on support programs-Bizinfo and SME Venture 24-will be merged into a single platform. This integrated platform will provide information on more than 2,700 support programs for SMEs, venture companies, and small business owners administered by government ministries and local governments. It will also issue 21 types of certificates and confirmations, such as SME certificates and venture company certificates, in a unified manner. In addition, by logging into the integrated platform, users will be able to apply for support programs through a one-stop process, as the platform will be connected to application channels. Initially, it will be linked to the Ministry of SMEs and Startups’ 37 application channels, and later expanded to public institutions under other ministries through inter-ministerial consultations.

The issue of SMEs and small business owners having to read through each business announcement to find suitable support programs will be addressed using AI. The AI will learn from company industry, region, history of receiving support, and user search records to recommend the most appropriate support programs for each company. For exporting SMEs, tailored information on export destinations and tariffs will be provided; for small business owners, customized commercial district analysis will be offered; and for manufacturing companies, information on suitable technology suppliers will be given, providing specialized information for each support target.

The number of documents that companies must submit when applying for support programs will be reduced by more than 50%, from an average of nine to 4.4. Administrative documents such as business registration certificates, financial statements, and SME certificates will be obtained directly by support agencies through linkage with the Ministry of the Interior and Safety’s administrative information sharing and public MyData services. The current linkage rate of 43% will be expanded to 96% by next year.

AI will also assist with the preparation of business plans, which has been a burden for busy SMEs and small business owners, as these plans typically range from 10 to 20 pages. If a company enters its business registration number, desired support program, and business plan keywords, the AI will collect and learn from company information, business plan templates, and exemplary plans to provide a draft business plan tailored to the applicant and the support program.

To block unjust third-party intervention, such as illegal brokers, prevention and reporting channels will be operated at 13 regional SME and Startup Offices and seven public institutions under the Ministry of SMEs and Startups. The ministry will continuously monitor and eliminate cases of illegal brokers impersonating public institutions or engaging in false or exaggerated advertising, and will use AI to detect business plans drafted by illegal brokers. In addition, illegal acts among third-party interventions-such as impersonating government or public institutions, bundling insurance products, and submitting false documents-will be categorized, and the right to request documentation and sanction regulations will be established for these acts.

To overcome the limitations of expertise and objectivity among evaluation committee members, the government will expand the model in which it matches support to startups that have already received investment and recommendations from venture capital firms. Open innovation programs will also be expanded, allowing global corporations such as Hyundai Motor Company, LG, and Google to directly select partner startups that meet their needs and support them jointly with the government.

The open technology evaluation platform "K-TOP," developed through AI training on the accumulated big data of technology evaluations and patents of SMEs and startups, will be further promoted. K-TOP will be applied to the evaluation process of innovative companies in support programs for manufacturing AI and R&D, enabling the objective and efficient selection of outstanding companies. In addition, a one-stop technology finance system will be established by linking with the financial market: when banks evaluate loan applicants through K-TOP, the Korea Technology Finance Corporation will issue guarantees, and banks will immediately execute loans.

Furthermore, the AI evaluation model (K-value) currently used by the Korea SMEs and Startups Agency to select companies for policy fund support will be applied to various SME support programs, such as innovation vouchers and the Jump-Up Program, to efficiently select beneficiary companies. In cooperation with related ministries, including the Financial Services Commission, a specialized credit evaluation system (SCB) for small business owners will be developed and applied to policy funds for small business owners.

Han Sung-sook, Minister of SMEs and Startups, stated, "Now, the public sector must also achieve service innovation. We must no longer inconvenience SMEs and small business owners," adding, "We will do our utmost to ensure that the SME support system is improved into a people-centered, intuitive, friendly, and easy-to-use system."

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