South Korean Government has set up $1.72 billion (1.95 trillion KRW) worth of fund to support small businesses and it also set up a special fund for small businesses with low credit. It is planning to reduce burden from principal repayment by introducing ‘self-repayment system’ that adjusts repayment conditions and schedule depending on one’s business.
Ministry of SMEs and Startups (MSS) announced that it set up a fund that will support small businesses with financing, education, and others.
Financing, which takes up more than 90% of the fund, is increased by $265 million (300 billion KRW) compared to last year’s budget. MSS increased amount of financing after applying opinions from small businesses that are having most difficult time with financing. In a long term, MSS is planning to increase amount of fund for supplemental businesses.
This political fund is for small businesses and neglected class of people.
MSS is also going to increase number of selections for consumers regarding mortgage payoff.
MSS established a program to induce establishment of small businesses and it is planning to provide technical education to 15,000 people so that they can quickly react to changes in management.
MSS is also going to establish a project to promote small businesses to enter online markets.
MSS also has plans to help those small businesses that are on brink of closure.
“We are going to do our best to help small businesses to create positive cycle.” said Kwon Dae-soo.
Staff Reporter Park, Jungeun | jepark@etnews.com