Jungjingong, a Stepping Stone for Overcoming SME Management Crisis 'Recovery Consulting'

Seeking New Paths with Career Consulting... Up to 2.16 Million KRW and 330 Cases Supported
Business Recovery Consulting for Management Normalization... Up to 30 Million KRW for Corporate Rehabilitation and 2.16 Million KRW for Individuals

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 6th that they are recruiting companies to participate in the re-start consulting project that supports overcoming management crises and re-leaping of small and medium ventures.

The re-start consulting project is divided into two types: career guidance consulting and rehabilitation consulting. This year, SBC will support up to 330 cases of career guidance consulting with a maximum of 2.16 million KRW each. For rehabilitation consulting, individual rehabilitation will support up to 200 cases with a maximum of 2.16 million KRW each, and corporate rehabilitation will support 138 cases with a maximum limit of 30 million KRW, differentiated according to asset size.

Career guidance consulting involves experts diagnosing companies and prescribing appropriate paths such as structural improvement, business closure, or corporate rehabilitation according to the company’s situation, along with providing linked support. Eligible targets are ▲companies experiencing management deterioration due to decreased sales ▲companies receiving re-start funds ▲companies wishing to close their business.

Rehabilitation consulting assists with court rehabilitation procedures to facilitate rapid management normalization and efficient rehabilitation. Eligible targets are ▲companies confirmed as 'eligible for rehabilitation consulting support' after applying for career guidance consulting and court rehabilitation ▲companies recommended by district courts after applying for rehabilitation under voluntary restructuring ▲small business owners wishing for individual rehabilitation.

Notably, support for individual rehabilitation is newly introduced this year. Small business owners whose income exceeds 125% of the median income can receive rehabilitation consulting from SBC, while individuals below 125% can receive free legal counseling necessary for individual rehabilitation from the Korea Legal Aid Corporation. Previously, SBC signed a business agreement with the Korea Legal Aid Corporation last year to support small-scale small business owners.

The project scale is 5.1 billion KRW, and applications are accepted until the budget is exhausted. Participation applications can be made through the Innovation Voucher platform, and detailed information can be obtained by contacting SBC’s Re-leap Growth Division. Chairman Kim Hak-do said, "Last year, we actively supported re-start consulting for 309 companies to help small businesses overcome crises and normalize management," adding, "SBC will serve as a stepping stone for small and medium ventures to withstand the perfect storm of simultaneous adverse factors and find new growth opportunities amid crises to rise again."