Korea SMEs and Startups Agency (KOSME) said on the 8th it produced and will distribute a "business winding-down and closure practical guidebook" and a "SME re-challenge support system" brochure to reduce difficulties small and midsize companies face when winding down operations and to support re-challenges after closure.
In the business winding-down process, administrative procedures such as debt settlement and tax filing must be completed. However, the procedures are complex, creating significant time and expense burdens, and there are many cases where essential documents are not submitted on time or the filing deadline is missed and fines are imposed. Due to a lack of information and expertise, there are also cases where a corporation is left unattended without being liquidated after closure.
Korea SMEs and Startups Agency (KOSME) published two brochures to reduce these problems by organizing the business winding-down procedures and key cautions, and enabling corporations preparing to restart after closure to see the necessary support programs at a glance.
The "business winding-down and closure practical guidebook" includes content to help corporations preparing for winding down easily understand practical procedures by field—tax, labor, and legal—such as ▲ rehabilitation and bankruptcy systems ▲ step-by-step closure procedures ▲ field-specific checklists ▲ a case-focused frequently asked questions (FAQ).
The "SME re-challenge support system" booklet brings together re-challenge support programs scattered across various institutions into one place, structured so readers can compare and check major support programs such as ▲ re-startup support ▲ debt adjustment and credit recovery ▲ support for recovery of SMEs in management crisis.
The booklet will be provided free of charge as an e-book on the Rechallenge Support Headquarters website.
Kim Il-ho, corporate finance director at Korea SMEs and Startups Agency (KOSME), said, "Closure is not the period at the end of a business, but a process of preparing for new possibilities," adding, "We hope this booklet helps lay the groundwork for re-challenges and a return to normal management."