Seoul Small Business Policy Fund Supported Companies 5-Year Survival Rate 55.7%... Twice the National Average

Seoul Credit Guarantee Foundation Announces Results of 'Seoul City Small Business Development Fund Support Performance and Future Policy Directions'

Seoul Small and Medium Business Development Fund Beneficiary Companies, Seoul Small Business Owners, Nationwide Companies Annual Survival Rates (Provided by Seoul Metropolitan Government)

[Asia Economy Reporter Hyunju Lee] It has been found that the 5-year survival rate of companies supported by the 'Small and Medium Enterprise Development Fund' from the Seoul Metropolitan Government is twice the national average.

The Seoul Credit Guarantee Foundation announced the research results on the "Support Performance of Seoul's Small and Medium Enterprise Development Fund and Future Policy Directions" on the 20th.

The Small and Medium Enterprise Development Fund is a policy fund provided by the Seoul Metropolitan Government to offer long-term low-interest loans to alleviate the management burden of small business owners and SMEs.

The annual survival rates were 83.2% in the first year and 70.7% in the third year, which is 20 percentage points higher than the national average of 65.3% and 41.5%, respectively. In particular, the 5-year survival rate of supported companies was 55.7%, significantly exceeding the national average of 28.5%.

By industry, the 5-year survival rates in manufacturing, wholesale and retail trade, personal services, and accommodation and food services were more than 25 percentage points higher than the national average.

The Seoul Credit Guarantee Foundation plans to support 1.6 trillion KRW this year. To enhance the effectiveness of support, it will continuously improve the support system by developing customized credit evaluation models for small business owners and diversifying maturity structures by fund type.

Han Jong-kwan, the chairman, stated, "We will continue to develop field-oriented policies reflecting the voices of small business owners and strive to establish a foundation for a healthy and sustainable ecosystem where small business owners can operate with peace of mind."