Supporting startups with business items in everyday life
- Division
- International Cooperation Division
- Date
- 2018.06.12
- Writer
- Deputy Director Young Soon Lee
- File
- Headline
- MSS will encourage would-be entrepreneurs to start their businesses with the provision of up to KRW 20 million loans on condition of success, which can be exempted from repayment in case of business failure with integrity. Application for this program can be made at the Small Enterprise and Market Service website at www.ideasbiz.or.kr.
□ The Korean microbusiness market has become highly saturated, with a multitude of businesses constantly opening and closing. However, changes in the consumer trends have created niche markets that hold promising opportunities for microbusiness start-ups. In these niche markets, some microbusinesses have successfully caught the attention of the market with ideas drawn from everyday experiences such as environment-friendly woodcraft workshop, innovative clothes hangers, recycled artwork shop, etc. Ms. Kim Sangheui, Head of Mirea Wood Design in Daegu, had been hesitant to start her own business for fear of failure. However, her woodwork business turned out to be a great success. The business, which mainly deals with the “birch revolving bookcase” that the entrepreneur designed herself, earns a monthly average of KRW 15 million in revenue.
□ On June 8, 2018 (Friday), the Ministry of SMEs and Startups launched the Living Innovation Startup Acceleration Program. The program supports start-up businesses that combine unique ideas with business items that draw from everyday experience. Living Innovation Startups are promising businesses in niche markets created by changes in consumer trends and other factors, which apply unique ideas to business items that draw from everyday experience, which is a hybrid between a start-up for subsistence and a tech start-up.
□ With the new program, the MSS plans to address the oversaturation of the microbusiness market and spur the growth of newly created niche markets by encouraging microentrepreneurs to open their businesses in the niche markets rather than other overly saturated market segments such as restaurants, retailers, and services. The MSS will select 3,000 Living Innovation Startup Entrepreneurs this year that will be granted with “conditional loans” (up to KRW 20 million each), which they do not have to repay if they succeed or fail despite their best efforts. The conditional loans will be granted after the selected business’ readiness, capabilities, and feasibility have been comprehensively reviewed, and the entrepreneurs receive mentoring by expert consultants.
□ Under the “conditional loan” system, which the ministry newly adopted this year, the government takes over some risks of failure so that entrepreneurs can open their businesses with less fear of failure. The selected businesses will be reviewed for success after three years. Successful businesses will be required to repay the loans, whereas failed businesses will be partially released from their repayment obligations depending on whether they failed intentionally or despite their best efforts. Entrepreneurs who intentionally sabotage their own businesses will be required to repay their loans in full. Entrepreneurs who fail despite their best efforts will be partially released from their repayment obligations depending on their business integrity evaluation results.
□ Mr. Pyeon Jangbeom, an officer in charge at the MSS, said, “The program presents a great opportunity for Living Innovation Startup Entrepreneurs with innovative ideas capable of capitalizing on the opportunities created by changes in consumer trends.” He added that the ministry plans to provide follow-up support, including management training, consulting, and policy grants designed to ensure their success, and exert efforts to systematically manage their growth to help them increase their revenues and create more jobs.
□ The application for the program opens on June 8, 2018 (Friday), and closes on November 30, 2018 (Friday) or until the budget is depleted. Entrepreneurs can apply by filling out a simplified business plan form on “Idea Tok Tok,” which is a platform dedicated to the program (http://www.ideasbiz.or.kr, Small Enterprise and Market Service). Eligible applicants include would-be entrepreneurs with Living Innovation business items and start-ups who opened their business a year ago or less as of the date of the announcement. Young entrepreneurs aged under 40 will be given preferential consideration. Further information on the program can be found on the Micro Entrepreneur Forum menu of the Small Enterprise and Market Service website or by contacting the Small Enterprise and Market Service.
□ On June 8, 2018 (Friday), the Ministry of SMEs and Startups launched the Living Innovation Startup Acceleration Program. The program supports start-up businesses that combine unique ideas with business items that draw from everyday experience. Living Innovation Startups are promising businesses in niche markets created by changes in consumer trends and other factors, which apply unique ideas to business items that draw from everyday experience, which is a hybrid between a start-up for subsistence and a tech start-up.
□ With the new program, the MSS plans to address the oversaturation of the microbusiness market and spur the growth of newly created niche markets by encouraging microentrepreneurs to open their businesses in the niche markets rather than other overly saturated market segments such as restaurants, retailers, and services. The MSS will select 3,000 Living Innovation Startup Entrepreneurs this year that will be granted with “conditional loans” (up to KRW 20 million each), which they do not have to repay if they succeed or fail despite their best efforts. The conditional loans will be granted after the selected business’ readiness, capabilities, and feasibility have been comprehensively reviewed, and the entrepreneurs receive mentoring by expert consultants.
□ Under the “conditional loan” system, which the ministry newly adopted this year, the government takes over some risks of failure so that entrepreneurs can open their businesses with less fear of failure. The selected businesses will be reviewed for success after three years. Successful businesses will be required to repay the loans, whereas failed businesses will be partially released from their repayment obligations depending on whether they failed intentionally or despite their best efforts. Entrepreneurs who intentionally sabotage their own businesses will be required to repay their loans in full. Entrepreneurs who fail despite their best efforts will be partially released from their repayment obligations depending on their business integrity evaluation results.
□ Mr. Pyeon Jangbeom, an officer in charge at the MSS, said, “The program presents a great opportunity for Living Innovation Startup Entrepreneurs with innovative ideas capable of capitalizing on the opportunities created by changes in consumer trends.” He added that the ministry plans to provide follow-up support, including management training, consulting, and policy grants designed to ensure their success, and exert efforts to systematically manage their growth to help them increase their revenues and create more jobs.
□ The application for the program opens on June 8, 2018 (Friday), and closes on November 30, 2018 (Friday) or until the budget is depleted. Entrepreneurs can apply by filling out a simplified business plan form on “Idea Tok Tok,” which is a platform dedicated to the program (http://www.ideasbiz.or.kr, Small Enterprise and Market Service). Eligible applicants include would-be entrepreneurs with Living Innovation business items and start-ups who opened their business a year ago or less as of the date of the announcement. Young entrepreneurs aged under 40 will be given preferential consideration. Further information on the program can be found on the Micro Entrepreneur Forum menu of the Small Enterprise and Market Service website or by contacting the Small Enterprise and Market Service.