The government will provide one-stop, tailored policies, including business diagnostics, to proactively support small business owners facing management crises.
The Financial Services Commission and the Ministry of SMEs and Startups said on the 27th that they signed a "business agreement for proactive and comprehensive support for small business owners in management crisis and low-income and vulnerable groups" at the Bank Hall in Jung-gu, Seoul.
Seven institutions attended the signing ceremony, including the SEMAS, Korea Federation of Credit Guarantee Foudations (KOREG), Korea INclusive Finance Agency (KINFA), Credit Counseling & Recovery Service (CCRS), and the Korea Federation of Banks.
The government assessed that many small business owners are struggling with management as closures of small businesses and loan delinquency rates increase. It said small business owners may not accurately recognize crisis conditions, or even if they do, support may not be provided in a timely manner because it is difficult to apply one by one for complex support policies.
Accordingly, SEMAS, regional credit guarantee foundations, and 17 private banks will preselect small business owners at risk of management crisis and proactively provide tailored policy information, including the "My store management diagnosis" service on "Small Business Owner 365," a commercial district analysis service, and consultations at the New Start Support Center. Starting on the 31st, guidance will be provided monthly or quarterly to 100,000 to 200,000 small business owners annually.
In addition, by establishing a cooperation system among SEMAS, KINFA, and CCRS, small business owners and low-income and vulnerable groups can receive counseling on dispersed government support measures or follow-up support from linked institutions even by visiting just one institution. At 50 Inclusive Finance Integrated Support Centers nationwide, composite support that goes beyond institutional silos will be strengthened by linking programs such as the National Employment Support Program and the basic livelihood guarantee system.
Lee Eog-weon, chair of the Financial Services Commission, attended the signing ceremony and said, "We changed the service from an administration supplier-centered approach to a policy demand-centered approach," and added, "We expect that the linkage network spanning finance, employment, and welfare in composite support will inject economic vitality."