"It was not that the government provided support to small business owners struggling due to COVID-19, but that it offered loans, which worsened the liability situation."
President Lee Jae-myung on the 4th, at a briefing by the Ministry of SMEs and Startups on its work held at the Blue House State Guest House, referenced support policies for small business owners during COVID-19 and noted that loan-centered support by the government increased personal liability. In particular, the need to continue the debt adjustment program for small business owners, which is scheduled to end this year, was also raised.
At the MSS work report, the president asked SEMAS Chairperson In Tae-yeon about the extension and repayment status of COVID-19 policy loans and closely reviewed the small business owners' liability issue. SEMAS, an agency under the Ministry of SMEs and Startups (MSS), is in charge of support for small business owners, including policy loans.
The president said, "The credit status of small business owners and the self-employed deteriorated greatly after COVID-19," and asked, "Weren't the loans extended that were provided as policy funds during COVID?"
The president went on, "This may be subjective, but overseas, governments directly supported small business owners during COVID and bore the burden, while we handled it with loans and placed the responsibility on individuals," and added, "The self-employed are struggling because of liability, the economic situation is not good, and neighborhood commercial districts are continuing to worsen. We cannot leave this debt solely as an individual responsibility." The president then asked, "Have you ever estimated the scale of the debt that was shifted to individuals at the time?"
In, the chairperson, answered, "It is not an exact figure, but there was talk that it was around 100 trillion won at the time."
In continued, "Currently, the 'New Start Fund,' a government debt adjustment program for small business owners and the self-employed that extends repayment periods and partially adjusts principal, is being operated," and said, "However, this program is scheduled to end this year, and I think it should not end."
On the day, Noh Yong-seok, the Ministry of SMEs and Startups (MSS) Vice Minister, announced policy directions for the second half. Noh is acting in the role with the Minister post vacant.
The Ministry of SMEs and Startups (MSS) plans to strengthen the fostering of innovative companies by building a growth ladder that spans from startup to growth, global expansion, and second-chance entrepreneurship, and to advance the national startup ecosystem by expanding the "startup for all" project.
The Ministry of SMEs and Startups (MSS) will also promote enhancing the competitiveness of traditional markets and local commercial districts, establishing a basic social security system for small business owners, and reforming policy finance. It plans to expand win-win cooperation between large corporations and SMEs beyond manufacturing to platforms, finance, and defense, and work to create a fair corporate ecosystem.
The Vice Minister said, "We will do our best to realize an irreplaceable Republic of Korea where SMEs, ventures, and small business owners all grow."