Yoo Hee-sook, President of the Rechallenge SME Association, "Government Should Build Rechallenge System Rather Than Debt Forgiveness"

Consultation and Advice for Aspiring Re-entrepreneurs
"Need for Improvement in Re-challenge System"
Re-challenge Event to be Held on the 8th of Next Month

Yu Hee-suk, president of the Rechallenge Small and Medium Business Association (photo), has held the position since 2015. As the association's name suggests, he is also an entrepreneur who succeeded in a second challenge after experiencing business failure. He provides direct recovery counseling and advice to those dreaming of re-starting a business and introduces related systems. In an interview with Asia Economy, he said, "I believe success is a matter of people, and failure is a matter of systems," adding, "Statistics show that only 10% of domestic entrepreneurs succeed, but if the rechallenge system is improved, I believe 30 to 40% can succeed."

Having worked in film production, he said that in the early 2000s, after receiving a 3 billion won investment from a large corporation, he became a credit delinquent within three months due to an 80 million won overdue VAT out of 300 million won. President Yu recalled, "I did not expect the tax issue to become so serious," and said, "Once I became credit delinquent, problems with credit cards, bank loans, and regional credit guarantee loans dominoed, leaving me unable to recover credit or even file for bankruptcy." The 80 million won tax increased to 220 million won with additional penalties, and it took more than 10 years to clear the debt.

He said, "With the hope that my experience would help entrepreneurs, I became an entrepreneurial mentor at the 'Rechallenge Comprehensive Support Center' operated by the Small and Medium Business Corporation, and later took on the role of association president." He was also able to challenge the Korean Wave content business by receiving re-startup funds from the Small and Medium Business Corporation. Listening to the difficulties on the ground, he strongly felt the need to improve rechallenge-related systems. Issues pointed out included the difficulty for entrepreneurs with rehabilitation or bankruptcy experience to receive guarantees from institutions like the Korea Technology Finance Corporation, and the scattering of responsible agencies and tasks across ministries, forcing entrepreneurs to run around.

President Yu lamented, "In reality, once someone falls into the abyss, it is difficult to return as an entrepreneur," adding, "Credit problems hold them back, so instead of pursuing innovative businesses that require a challenging spirit, they are forced to settle for stable or survival-type startups." However, he expressed hope in the new government's will to improve the rechallenge environment through its 110 national tasks. He emphasized, "Once the COVID-19 situation calms down, the problems of small and medium-sized business owners burdened with debt will come to the forefront," and said, "The government should build a system that gives opportunities to repay debts and restart businesses, rather than simply forgiving debts through budget input."

Meanwhile, the association will hold the first 'Rechallenge Festival Day' event on the 8th of next month at the Seoul Startup Hub in Mapo-gu, symbolizing 'seven falls, eight rises.' The event will encourage re-startup entrepreneurs and introduce the achievements of rechallenge policies from various institutions such as the Ministry of SMEs and Startups, Small and Medium Business Corporation, Korea Technology Finance Corporation, Small Enterprise and Market Service, Startup Promotion Agency, and Ministry of the Interior and Safety, promising organic cooperation among institutions. Appreciation plaques will also be awarded to lawmakers who proposed rechallenge-related laws, including Jang Je-won of the People Power Party and Kim Kyung-man of the Democratic Party. President Yu introduced the event as "an occasion to find ways to overcome COVID-19 and expand entrepreneurial spirit through a network of entrepreneurs in the process of failure, recovery, and success."