Chairman Kim Attends 'New Start Fund Meeting' as First Step After Inauguration
Gathering Opinions on Difficulties and Improvement Needs of Small Business Owners and Self-Employed
Requests Financial Sector to Develop Additional Support Measures for Small Business Owners and Self-Employed
Kim Byung-hwan, the newly appointed Chairman of the Financial Services Commission, is entering the Government Seoul Office in Jongno-gu, Seoul on the 31st. Photo by Jo Yong-jun jun21@
Kim Byung-hwan, Chairman of the Financial Services Commission, attended the ‘New Start Fund Meeting’ as his first official activity after taking office, directly meeting with small business owners and self-employed individuals to listen to the difficulties faced in the field.
On the 1st, Chairman Kim visited the New Start Fund department at the Korea Asset Management Corporation (KAMCO) Yangjae Tower in Seoul, where he received explanations from KAMCO about the significance and support process of the New Start Fund, a debt adjustment program exclusively for small business owners and self-employed individuals, and listened to the practical challenges faced by the staff before attending the meeting.
In his opening remarks at the meeting, Chairman Kim said, "Given the severe difficulties faced by small business owners and self-employed individuals, I arranged this occasion to take my first step as Financial Services Commission Chairman together with them," adding, "We will expand the support targets of the New Start Fund, which is one of the core measures of the comprehensive plan for small business owners and self-employed individuals, and faithfully prepare the announced measures such as linking employment and re-startup education for insolvent business closures."
He continued, "It is important to directly hear the opinions from the field regarding the various difficulties faced by small business owners and self-employed individuals and to seek the most practical and effective support measures. Going forward, as a ‘partner’ of the people’s livelihood, we will create policies in all areas of finance that the public can empathize with."
Additionally, he listened to the difficulties of small business owners and self-employed individuals, their experiences using the New Start Fund, and points needing improvement or supplementation from beneficiaries of the New Start Fund, professional organizations, and counseling staff.
Beneficiaries of the New Start Fund shared that despite the difficulties in repaying debts due to COVID-19, high interest rates, and high inflation, receiving debt adjustment support from the New Start Fund gave them hope to start anew. However, they also mentioned, "In cases where loans were taken from local Saemaeul Geumgo (Community Credit Cooperatives), which are not affiliated with the New Start Fund agreement, debt adjustment support was not available." They further explained, "Refinancing loans received during efforts to repay existing debts were treated as new loans that cannot be adjusted for debt in order to prevent moral hazard, which actually disadvantaged our efforts to repay."
Professional organizations shared cases where applications for the New Start Fund were made but no support was received. They pointed out, "Since August 2022, loans obtained through special guarantees for low-credit borrowers from regional credit guarantee foundations have faced difficulties in receiving debt adjustment support through the New Start Fund," and added, "Many people who started businesses after retirement fail due to insufficient knowledge and skills compared to their enthusiasm, but there are also many who want to properly study and prepare for the same industry again. Therefore, we request expanded linked support such as consulting and advisory services along with debt adjustment."
Counseling staff also shared their reflections based on actual counseling experiences in the field. They said, "Most of those seeking support from the New Start Fund have the will to repay debts and restart, but are in difficult situations. It is very heavy on the heart to tell them they are not eligible for support," adding, "With the recent expansion of support targets in the 7.3 measures, I am glad to be able to tell more people that support is possible going forward."
In response, Chairman Kim said, "We will reflect the vivid opinions from the field in our policies," and added, "We will continuously strive to enable the New Start Fund to support small business owners and self-employed individuals more broadly and deeply, and will also continuously pursue qualitative improvements together with KAMCO and related organizations." He further stated, "Since the situation of small business owners and self-employed individuals remains difficult, we will discuss additional support measures for small business owners together with banks and other private financial institutions."
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