Korea Rolls Out New Support Fund for Small Businesses

Government Launches Small Business Resilience Support Fund

The South Korean government has announced the launch of the “Small Business Resilience Support Fund,” a new initiative designed to provide crucial financial assistance to small and medium-sized enterprises (SMEs) struggling with current economic challenges. Spearheaded by the Ministry of SMEs and Startups (MSS), the program aims to bolster the stability and foster the growth of these vital businesses, which form the backbone of the Korean economy.

To be eligible for the support fund, businesses must meet specific criteria. Applicants must be officially registered SMEs operating within South Korea for at least one year as of the application date. Additionally, they are required to demonstrate a revenue decline of 10% or more in the most recent fiscal quarter compared to the same period in the previous year. Businesses from all sectors are encouraged to apply, provided they meet these fundamental conditions.

The fund offers two primary forms of aid: direct grants and low-interest loans. Eligible businesses can receive a non-repayable grant of up to 10 million Korean Won (KRW). For those requiring more substantial support, low-interest loans are available, capped at 50 million KRW per business, featuring an annual interest rate of just 1%. The specific aid package provided will be determined based on the applicant’s financial situation and assessed needs.

The application window for the Small Business Resilience Support Fund is open from April 15 to May 15, 2024. Interested SMEs can apply exclusively through the dedicated online portal, which will be accessible via the K-Startup website or the official MSS government support platform. Required documents include a valid business registration certificate, recent financial statements demonstrating revenue decline, and a completed application form, all to be submitted digitally.

The Korean government frequently introduces support programs to ensure the robustness of its SME sector. For further inquiries or assistance with the application process, businesses can contact the Ministry of SMEs and Startups Call Center at 1357, a dedicated helpline for SME support services.

Source: DART (Financial Supervisory Service) — 대한조선 — Original Disclosure (Korean)