Small and medium-sized enterprises (SMEs) identified 'revitalizing domestic demand and promoting consumption' as the first policy they wish the new government to prioritize.
The Korea Federation of Small and Medium Enterprises announced the results of a 'policy survey for small and medium-sized enterprises that the new government should prioritize', conducted from the 17th to the 20th on 396 participants of the Yellow Umbrella (small business and small enterprises mutual aid) on the 27th.
In response to a question regarding the tasks that the new government should prioritize for small and medium-sized enterprises, 'revitalizing domestic demand and promoting consumption (39.4%)' was the most common answer, followed by 'financial support (32.4%)' and 'strengthening the social safety net (12%).
In response to a question about the revitalization effect of the 'living recovery consumption coupon' implemented since last week, 81.1% responded that they expect it to be effective, indicating that small and medium-sized enterprises are hopeful for domestic recovery through the consumption coupon.
Regarding debt adjustment for long-term and small arrears through a specialized institution, a bad bank, the percentage of respondents opposing it (59.1%) was higher than those in favor (40.9%), suggesting concerns about equity for diligent repayers and moral hazard.
When asked whether a specialized credit evaluation model for small and medium-sized enterprises is necessary outside of credit evaluations based on financial statements such as sales figures when securing bank loans, the majority responded 'it is necessary (71%)'. Financial institutions were analyzed to need to prepare measures to evaluate the credit of small and medium-sized enterprises using various alternative information such as electricity bill payment records and durations of Yellow Umbrella membership, in addition to traditional financial information.
The most common way to learn about the support system for small and medium-sized enterprises was 'major media outlets such as news and newspapers (30.2%)', followed by 'government or public agency websites (17.3%)' and 'social media such as YouTube and blogs (16.8%)'. In response to the question about whether promotion of the support system for small and medium-sized enterprises is being conducted well, the answers were 'average (54.3%)', 'not well (26.8%)', and 'well (18.9%)' in that order.
Lee Min-kyung, head of the policy coordination office at KBIZ, said, 'Due to the continued sluggish domestic demand, the number of bankruptcies exceeded 1 million last year, indicating significant difficulties for small and medium-sized enterprises. However, it is positive that private consumption increased compared to the previous quarter in the second quarter economic growth rate announced by the Bank of Korea,' and expressed hope that the living recovery consumption coupon would be a catalyst for revitalizing domestic demand.
The Deputy Minister also noted, 'While it is commendable to support the revitalization of vulnerable borrowers through a bad bank, we need to consider incentive measures for diligent repayers to avoid creating a sense of deprivation among those who faithfully repay their loans.'