The Ministry of SMEs and Startups Draws Up Supplementary Budget of KRW 1.28 Trillion
- Division
- International Cooperation Division
- Date
- 2019.04.24
- Writer
- 국제협력담당관
- Headline
With the recent passing of the amendment bill on the Framework Act on the Management of Disasters and Safety, which includes fine dust as one of the social disasters, in the National Assembly, and the need to revitalize the economy in preparation for a recession, the government prepared its first supplementary budget plan and fund management plan for 2019 and submitted them to the National Assembly.
The Ministry of SMEs and Startups (Minister Park Young-Sun; hereafter “MSS”) accounts for about 19% of the entire supplementary budget of the government that amounts to KRW 1 trillion and 283.9 billion (based on total expenditure). Its budget is mostly comprised of funds to support the reduction of fine dust, promote job creation among start-ups, and address the business difficulties of small business owners and the self-employed.
First, to reduce fine dust, the MSS plans to provide fund guarantee (around KRW 600 billion) to enhance the fine dust reduction facilities of SMEs and support their technological development through the Korea Credit Guarantee Fund and Korea Technology Finance Corporation and provide/install air purifiers at customer satisfaction centers of traditional markets.
Moreover, as part of an effort to respond to the economic downturn and create jobs, the MSS introduced a package (KRW 31.8 billion) to support the middle-aged and older people who are starting new businesses while expanding investment in the fund to support the innovative growth of start-ups in initial stages (KRW 150 billion) and establish a fund dedicated to the scaling-up of businesses (KRW 50 billion).
In addition, the MSS secured funds to offer financing to small business owners (KRW 200 billion) and expanded the reguarantee funds of regional credit guarantee foundations (KRW 15 billion) to address the business difficulties of small business owners and the self-employed.
Through the supplementary budget, the MSS intends to provide active support to resolve business difficulties and support the recovery of small business owners and SMEs that are struggling with hardship because of the recent fine dust issue and economic slowdown.
The Ministry of SMEs and Startups (Minister Park Young-Sun; hereafter “MSS”) accounts for about 19% of the entire supplementary budget of the government that amounts to KRW 1 trillion and 283.9 billion (based on total expenditure). Its budget is mostly comprised of funds to support the reduction of fine dust, promote job creation among start-ups, and address the business difficulties of small business owners and the self-employed.
First, to reduce fine dust, the MSS plans to provide fund guarantee (around KRW 600 billion) to enhance the fine dust reduction facilities of SMEs and support their technological development through the Korea Credit Guarantee Fund and Korea Technology Finance Corporation and provide/install air purifiers at customer satisfaction centers of traditional markets.
Moreover, as part of an effort to respond to the economic downturn and create jobs, the MSS introduced a package (KRW 31.8 billion) to support the middle-aged and older people who are starting new businesses while expanding investment in the fund to support the innovative growth of start-ups in initial stages (KRW 150 billion) and establish a fund dedicated to the scaling-up of businesses (KRW 50 billion).
In addition, the MSS secured funds to offer financing to small business owners (KRW 200 billion) and expanded the reguarantee funds of regional credit guarantee foundations (KRW 15 billion) to address the business difficulties of small business owners and the self-employed.
Through the supplementary budget, the MSS intends to provide active support to resolve business difficulties and support the recovery of small business owners and SMEs that are struggling with hardship because of the recent fine dust issue and economic slowdown.