The government will relax the industry restriction criteria of the New Start Fund, a debt adjustment program for self-employed individuals and small business owners. It will also streamline the debt adjustment process to accelerate support and strengthen incentives for diligent repayers.
The Financial Services Commission noted on the morning of the 7th that it held the third relay meeting of the New Start Fund for small business owners in Busan. The FSC plans to reflect the difficulties heard during this meeting and prepare improvements for the New Start Fund system to implement next month.
The FSC decided to ease the industry restriction criteria so that small business owners engaged in multiple industries can adjust their debt even if they simultaneously operate support-restricted industries such as real estate leasing and brokerage, provided their primary industry does not fall under the restricted category. Additionally, if a guarantee debt is converted to an unsecured debt due to subrogation during the New Start Fund utilization process, the corresponding debt will be exempt from the limit criteria (exceeding 500 million won).
To improve the speed of contract signings for the New Start Fund, discussions are underway to streamline the debt adjustment process and redesign the incentive structure for creditor financial institutions.
It will also check for any shortcomings in strengthening incentives for diligent repayers. The FSC will collaborate with the Korea Federation of Small and Medium Enterprises, Korea Federation of Micro Enterprise, and Busan City to promote a support project for diligent repayers. It plans to provide support such as the Yellow Umbrella Leap Support Fund (100,000 won per person), business site improvement costs (up to 10 million won per person), health check-ups (up to 250,000 won per person), and consulting for closures/restoration costs (4 million won per person) for those who have been diligent repayers for more than 3 to 6 months.