"Next Year’s SME Business Environment Not Easy... Preparing Support Measures Matching On-Site Demand"

Kim Juhyun, Chairman of the Financial Services Commission, visited small and medium-sized enterprises (SMEs) to listen to their difficulties in order to establish corporate finance support measures for next year. Chairman Kim stated, "The business environment for SMEs will not be easy next year either," and added, "We will prepare support measures tailored to the needs on the ground."

On the 1st, the Financial Services Commission announced that it held a 'SME Field Meeting' at the Chungnam Northern Chamber of Commerce and Industry in Cheonan, Chungnam. The meeting was attended by Chairman Kim, the President of the Korea Credit Guarantee Fund, the President of the Industrial Bank of Korea, and representatives from eight SMEs.

Financial Services Commission Chairman Kim Ju-hyun is responding to lawmakers' questions at the Political Affairs Committee's audit held at the National Assembly on the 11th. Photo by Kim Hyun-min kimhyun81@

The meeting was held to directly hear the voices from the SME business sites amid the prolonged triple high phenomenon of high interest rates, high exchange rates, and high oil prices, as well as the economic slowdown, and to reflect these in next year's corporate finance support measures.

Seo Kyungran, Head of the SME Industry Research Division at the IBK Economic Research Institute, said at the meeting, "Due to the continued triple high phenomenon caused by domestic and international uncertainties and delayed economic recovery, the business conditions for SMEs next year will be challenging. SMEs are facing significant difficulties due to the burden of high interest rates and increased costs from inflation," adding, "Customized financial support to fill funding gaps is necessary."

SME representatives attending the meeting also voiced difficulties caused by increased interest expenses due to high interest rates, rising raw material prices due to high inflation and supply chain restructuring. They emphasized the need for policy support for future-oriented areas, mentioning their efforts toward ESG management and demand for new facility investments.

Chairman Kim stated, "We will re-examine the 80 trillion won scale financial support plan announced last January to see if there are any shortcomings, and consider measures to supplement and strengthen conditions and preferential benefits according to the current situation," adding, "We will actively reflect the opinions presented by SMEs today and soon prepare and announce effective support measures."

Meanwhile, Chairman Kim plans to visit Busan (Putronic) on the 7th to directly hear the voices from the management sites of mid-sized enterprises. Together with relevant ministries, the opinions collected through this meeting and others will be faithfully reflected to prepare next year's corporate finance support measures.