In April 2024, a new spark of hope will be ignited for SMEs and micro-entrepreneurs, the heart of our economy. The government announced a large-scale financial support plan to restore the vitality of SMEs and micro-entrepreneurs and revitalize the private economy. The plan consists of three pillars: funding, interest reduction, and rehabilitation support, with a total of 41.6 trillion won in customized policy funds. This is expected to provide practical help to small and medium-sized enterprises (SMEs) and small businesses that are experiencing economic difficulties.
Supporting SMEs: Effective supply of customized policy funds
The KRW 41.6 trillion in policy funds for SMEs will provide new growth opportunities for SMEs, which are the foundation of various economic activities. These funds will play a vital role in resolving the financing difficulties faced by SMEs and exploring new business opportunities.
Small Business Policy Fund: Expanded Local Credit Guarantees and Interest Refunds
Additional support of KRW 1.7 trillion will be provided to small businesses. In particular, guarantees from the Local Credit Guarantee Foundation will be expanded to make it easier for small businesses to obtain financing. In addition, the KRW 1.5 trillion small business interest refund plan promoted by the banking sector will help reduce the financial burden on small businesses.
Financial Support Measures: Microfinance and Reinvestment Support
The financial support plan goes beyond just providing funds and includes a variety of measures, such as supporting the conversion of high-interest loans to low-interest loans, along with the smooth implementation of the microfinance plan. In addition, comprehensive financial support will be provided to help small businesses that are struggling to recover.
Reinvigorate: Expanded eligibility for the Fresh Start Fund and credit amnesty
Small businesses looking to get back on their feet will be provided with practical support through the expansion of the New Start Fund and credit amnesty. This will help them get back on their feet with improved credit scores, and in the long run, contribute to economic revitalization.
Revitalizing the private economy: the importance of comprehensive financial support
The financial support plan goes beyond just financial assistance to revitalize the private economy and promote sustainable growth of SMEs and micro-enterprises. The government will continue to complement the measures by reflecting the voices of the field and strive to ensure that the financial support is effective. This large-scale financial support plan for SMEs and micro-entrepreneurs, which form the backbone of the private economy, sends a message of hope amidst the more challenging economic conditions since the COVID-19 pandemic. We hope that this moment will be a new beginning for SMEs and micro-enterprises as the government and the private sector work together to overcome the crisis and set the stage for a brighter future.
