SMEs ministry expands support to include village enterprises and medical foundations

The SMEs ministry said Tuesday that the State Council approved a revision to the Basic Act on Small and Medium Enterprises, expanding eligibility for government support to include village enterprises, self-reliance companies, and medical foundations.

The amendment addresses a regulatory gap where social value-driven entities were excluded from policies available to similar organizations. Under current rules, village enterprises led by residents to solve local issues and self-reliance firms operated by welfare recipients have been unable to access official small business status despite their economic contributions.

Medical foundations established under the Medical Service Act have faced similar exclusion due to their non-profit classification, even as individual clinics and certain other non-profit medical institutions qualified for aid. This disparity raised persistent equity concerns given the role of medical foundations in resolving regional healthcare imbalances and creating jobs.

Once enacted, the revised law will allow these three groups to utilize policy loans, technology development, and sales channel assistance if they meet specific requirements set by presidential decree. The changes specifically target entities defined under the Village Enterprise Promotion Act, the National Basic Living Security Act, and the Medical Service Act.

Kim Dae-hee, director general for SME policy at the ministry, said, "Through this revision, we expect to reduce blind spots in support policies for village enterprises, self-reliance companies, and medical foundations that have contributed to local job creation, independent livelihoods for vulnerable classes, and regional medical service provision."