SMEs ministry unveils second-half plan for smaller companies

The SMEs ministry said Tuesday it will reshape support for smaller companies and ventures in the second half, seeking to build a clearer path from startups to larger businesses and extend the benefits of growth to regions and different social groups.

The ministry said its March-launched Everybody's Startup project drew a record 62,944 applicants for a government ministry startup or idea competition, with a competition rate of 12.6 to 1. "The past six months were a period in which we mobilized all the ministry's policy capabilities to help SMEs and ventures move beyond recovery toward innovative growth," Noh Yong-seok, the SMEs ministry's first vice minister and acting minister, said. "In the second half, we will do our utmost to build an irreplaceable Korea in which everyone can grow through an SME and venture growth ladder and the spread of the benefits of growth."

Under the plan, companies in emerging growth fields will be eligible for packages of support worth up to 40 billion won ($28 million) over five years. The ministry also plans to foster 3,000 companies as candidates to become national champions through growth strategies and bundled support. It plans to retain special provisions under the Venture Business Act for venture firms that grow into middle-market companies and expand overseas bases available to SMEs and startups.

It plans to revise small-business support programs across government, cut overlapping or underperforming initiatives and reallocate savings. The ministry will also work with local governments to replace aging arcades at traditional markets and strengthen market branding and delivery capabilities, while expanding employment and industrial accident insurance support for small-business owners.