Government to Invest Financially in SMEs for 'Digital and Low-Carbon Transition' Next Year

[Sejong=Asia Economy Reporter Son Seonhee] The government will invest finances in small and medium-sized enterprises (SMEs) that strengthen the transition to a digital and low-carbon economy next year. Additionally, it plans to increase investment in supporting the recovery of small business owners who have faced difficulties due to the COVID-19 pandemic.

On the afternoon of the 27th, Ando Geol, Vice Minister of Strategy and Finance, held a budget consultation meeting for the small business and SME sectors at the Small and Medium Business Technology Information Promotion Agency in Sejong to discuss next year's budget investment directions reflecting these points. This budget consultation meeting is the eighth sector-specific meeting following those on defense, jobs and employment, social welfare, and others. Participants included the Ministry of Strategy and Finance, the Ministry of SMEs and Startups, representatives of small business owners and SMEs, related organizations, and academic experts.

The government plans to focus next year’s budget investment on four major areas: ▲ fostering global innovative ventures and startups ▲ strengthening SMEs’ transition to a digital and low-carbon economy ▲ supporting the recovery of small business owners and cultivating resilient small businesses ▲ innovating regionally specialized SMEs.

Support for startups will be strengthened according to their growth stages, and collaboration between large corporations and startups will be expanded. To achieve the goal of "5 trillion won in venture investment" next year, the government will continue its catalytic investments such as through the Korea Fund of Funds.

The government will also concentrate investments in related fields so that SMEs can utilize the digital economy and carbon neutrality as growth opportunities. It aims to achieve the target of distributing 30,000 smart factories next year and support the non-face-to-face online transformation in SME production and exports.

Support for the recovery of small business owners who closed due to the COVID-19 pandemic, including re-startups and reemployment, will be strengthened, and focused investment will be made in supporting regionally specialized SMEs.