Government to Ease Financial Difficulties for Small Businesses and SMEs with 3.6 Trillion Won Loans and Guarantees

Joint Ministry Announcement of 'Chuseok Livelihood Stabilization Measures'
Various Events Held to Restore Consumer Confidence

Citizens are shopping at Namdaemun Market in Seoul. Photo by Mun Ho-nam munonam@

The government will provide policy fund loans and guarantees worth 3.6 trillion won to small business owners and small and medium-sized enterprises (SMEs) in celebration of Chuseok. Additionally, it will hold a special online event for traditional markets and a consumption promotion campaign to revive the frozen consumer sentiment.

The Ministry of SMEs and Startups announced the Chuseok livelihood stabilization measures on the 11th at Hanaro Mart in Yangjae-dong, Seoul, during the emergency economic and livelihood meeting presided over by the president. This measure was jointly prepared by government ministries to alleviate concerns about rising prices and economic instability ahead of Chuseok.

First, support will be expanded to ensure that small business owners and SMEs do not face financial difficulties by increasing policy fund loans and providing technology and credit guarantees. Through the Small and Medium Business Corporation and the Small Enterprise and Market Service, policy funds worth 1 trillion won will be supplied, and an additional 2.6 trillion won worth of credit guarantees will be provided through the Korea Technology Finance Corporation and regional credit guarantee foundations.

To revitalize small business owners and traditional markets, promotional events for Onnuri gift certificates will be held before and after the Chuseok holiday, and a special online event for traditional markets will be held from the 26th of this month to the 8th of next month. During September, the personal discount purchase limit for Onnuri gift certificates will be increased up to 1 million won, and rechargeable card-type gift certificates will also be introduced.

Minister Lee Young, Ministry of SMEs and Startups [Photo by Yonhap News]

An online special exhibition involving over 450 traditional markets nationwide will be held on platforms such as Naver and Coupang Eats, offering various benefits including free delivery within two hours and prize giveaways.

From the 1st to the 7th of next month, a consumption promotion campaign called the "7-Day Companion Festival" will be launched to create a turning point for the recovery of consumer sentiment. Package product sales linking large hotel resorts with local small business owners, special exhibitions of SME products, and regional promotional events will be held.

Furthermore, to respond to damages caused by concentrated heavy rains in the metropolitan area, a disaster response team will be activated and disaster funds will be provided to support rapid recovery.

Lee Young, Minister of SMEs and Startups, stated, "Recently, due to high inflation, the difficulties felt by traditional markets and self-employed individuals on the ground have intensified," adding, "We will faithfully implement the tasks included in the measures so that the public can genuinely feel the effects."