Ministry of SMEs and Startups and KOSME Launch Full-Scale Support for SMEs in Nuclear Power Cooperation

Support for Policy Funds, Structural Improvement, and Corporate Diagnosis

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) and the Korea SMEs and Startups Agency (Chairman Kim Hak-do, hereinafter referred to as KOSME) announced on the 3rd that they will officially launch a rapid and comprehensive support system for nuclear power plant cooperative SMEs to restore the nuclear power industry ecosystem and strengthen future competitiveness.

This is a follow-up measure to the "Support Plan for Nuclear Power SMEs" announced by the Ministry at the government nuclear power industry cooperative companies meeting held on the 22nd. Nuclear power cooperative SMEs have been facing management difficulties such as continuous decline in sales and number of employees since 2016 due to the suspension of new nuclear power plant construction. KOSME will provide comprehensive support including policy fund loans, structural improvement, and corporate diagnosis to revitalize small and medium nuclear power companies.

Specifically, 30 billion KRW of emergency management stabilization funds will be provided to companies experiencing temporary liquidity difficulties due to order reduction and rising raw material prices. Considering the prolonged stagnation of the nuclear power industry, application requirements will be relaxed and rapid evaluation models such as fast track will be applied. In addition, 20 billion KRW of new growth foundation funds will be prioritized for companies making new facility investments in anticipation of the revitalization of the nuclear power industry. For companies experiencing insolvency, rapid business normalization will be supported through a proactive autonomous structural improvement program jointly supported with banks, including new loans, interest rate reductions, and maturity extensions. Companies concerned about slowing growth will be supported to strengthen competitiveness by analyzing external environment and internal capabilities through diagnosis and consulting and presenting a growth roadmap.

Kim Hak-do, Chairman of KOSME, said, "In line with the government’s support measures for nuclear power SMEs, we will utilize all policy tools of KOSME, including policy funds, to support nuclear power cooperative SMEs," and added, "We will do our best to help nuclear power SMEs overcome difficulties and inject new vitality."