Korea SMEs and Startups Agency (KOSME) and KB Financial Group said on the 21st that they signed a memorandum of understanding (MOU) on the 19th at the new building of KB Kookmin Bank in Yeouido, Seoul, to support the establishment of industrial safety for small and midsize enterprises.
The MOU was pursued to support the prevention of serious industrial accidents at small and midsize enterprises and the creation of safe work environments through public-private cooperation. Attending the signing ceremony were Minister Han Seong-sook of the Ministry of SMEs and Startups, KOSME Chair Kang Seok-jin, and KB Financial Group Chair Yang Jong-hee.
Under the agreement, when KOSME discovers, nurtures, and recommends excellent small and midsize enterprises that possess safety technologies, KB Financial Group will support the recommended safety-technology corporations with its funds. The two institutions plan to contribute to closing industrial safety blind spots for small and midsize enterprises through a virtuous cycle in which the technology of those corporations is linked so it can lead to improvements at other small and midsize enterprise worksites.
The main points of the agreement are: ▲ developing and operating programs to prevent serious industrial accidents and create safe work environments ▲ discovering and supporting excellent small and midsize enterprises with safety-related technologies ▲ linking and cooperating on the main projects of the two institutions, including policy finance.
In particular, the core of this agreement is that it is a public-private partnership structure using the results-based financing model introduced in advanced countries such as the United Kingdom. Results-based financing provides financial rewards only when preset goals are achieved. Unlike simple subsidies, it can guarantee the autonomy of participating corporations while encouraging voluntary efforts. Accordingly, performance targets will include records of safety-technology corporations supporting on-site improvement activities at other small and midsize enterprises, and if the targets are achieved, additional budget support will be provided.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "This agreement will be a very exemplary case of cooperation in which private financial institutions and public institutions share responsibility to protect industrial safety at small and midsize enterprises," adding, "We will further solidify cooperation with related ministries and institutions along with policy support so that industrial accident prevention policies can be felt in the field."
KOSME Chair Kang Seok-jin said, "This agreement is meaningful in that it has established a new cooperation model that moves away from one-off subsidies and enables small and midsize enterprises to expand industrial accident prevention and safety management based on ESG," adding, "Taking this agreement as an opportunity, we will create an environment in which regional small and midsize enterprises can practice safety management focused on accident prevention and actively link related policy projects to support the continuous growth of small and midsize enterprises."