"Strengthening Corporate Structure"... KCCI Holds Seminar on Business Restructuring Support System

Starting from the 21st until next month nationwide
'Business Restructuring Support System' Benefits Guide and Promotion
480 Companies Have Utilized It from 2016 to This Month

The Korea Chamber of Commerce and Industry (KCCI), together with the Ministry of Trade, Industry and Energy, announced on the 18th that it will hold explanatory sessions nationwide on the 'Business Restructuring Support System' from the 21st of this month through next month.

Korea Chamber of Commerce and Industry Logo

The sessions will be held on the 21st at the Daegu Chamber of Commerce and Industry for companies in the Daegu and Gyeongbuk regions, on the 27th at the Gwangju Chamber of Commerce and Industry, and next month at the Busan, Daejeon, and Chuncheon Chambers of Commerce and Industry, respectively.

The explanatory sessions are designed to inform local companies about the Business Restructuring Support System and its benefits, aiming to promote the use of the system amid the industrial transformation era. The 'Business Restructuring Support System' is a government initiative that supports companies in proactively restructuring their businesses in response to internal and external environmental changes by providing support such as research and development (R&D) and financing, while simplifying procedures and regulations under the Commercial Act and the Fair Trade Act. This system was introduced with the enactment of the 'Special Act on Corporate Vitality Enhancement (Corporate Vitality Act)' in 2016. In line with this, the KCCI operates the Business Restructuring Comprehensive Support Center.

According to KCCI, from 2016 to this month, 480 companies have utilized the Business Restructuring Support System, averaging about 53 companies per year. Through structural improvements, these companies have achieved new investments totaling 37.5 trillion KRW and created around 20,000 jobs. By industry, the automotive parts sector (31.9%) has made the most use of this system due to the shift to eco-friendly vehicles, followed by machinery (10.6%), shipbuilding (9.2%), electrical and electronics (7.3%), software (6.3%), petrochemicals (5.2%), and medical devices (2.7%).

Meanwhile, the 'Corporate Vitality Act' will be converted into a permanent law starting from the 17th of next month, which is expected to provide more stable support for companies utilizing the Business Restructuring Support System. This law has been operated as a temporary law until now. Additionally, the scope of business restructuring support, which was previously limited to resolving oversupply, responding to industrial crisis areas, and entering new industries, will be expanded to include digital transformation, carbon neutrality activities, and supply chain stabilization.

Companies that receive approval for their business restructuring plans can also receive various incentives from the government. These include R&D funding support, preferential financing, consulting on business restructuring implementation strategies and difficulties, tax support such as deferred corporate tax, simplified procedures under the Commercial Act, and regulatory exemptions under the Fair Trade Act.

Kim Jin-gok, team leader of the Business Restructuring Comprehensive Support Center, said, "Companies that have utilized the Business Restructuring Support System to improve their structure have shown excellent management performance. Starting next month, as the scope of business restructuring support expands and various incentives such as financial, tax, and expert consulting become available, we hope that companies considering future growth will proactively use the Business Restructuring Support System."