'1 Year in Office' Kang Seok-jin, Chairman of KOSME... "Strengthening Liquidity Supply for SMEs and Ventures, Aiming for Globalization"

Expansion of Direct Policy Fund Loans by 270 Billion KRW in the Second Half
Full Efforts to Address Declining Working Population and Regional Disappearance

The Small and Medium Business Corporation (SBC) has set future goals to strengthen liquidity supply for small and medium enterprises (SMEs) and promote globalization.

Kang Seok-jin, President of the Small and Medium Business Corporation, is announcing the future directions for promoting four key focus areas at a press conference held on the 4th in Yeouido, Seoul, marking his first anniversary in office.
[Photo by Small and Medium Business Corporation]

Kang Seok-jin, SBC Chairman, stated at a press conference marking his first anniversary in office held on the 4th in Yeouido, Seoul, “We will strive to provide sufficient and prompt opportunities to SMEs that can regain their footing and make a new leap forward once they overcome difficult and challenging hurdles.”

First, as a catalyst for economic vitality, the liquidity supply to SMEs will be strengthened. The scale of direct policy fund loans will be increased by 270 billion KRW in the second half of the year, focusing on resolving financial difficulties such as emergency management stabilization fund support for crisis companies and secondary interest subsidies to ease interest burdens. Additionally, a proactive autonomous restructuring program supporting the swift normalization of temporarily distressed companies will be expanded from commercial banks to the private sector. Previously, SBC collaborated with 11 commercial banks, but plans to add venture capital (VC) firms and the Korea Technology Finance Corporation.

To support innovative growth and globalization of SMEs with high growth potential, overseas expansion assistance will be provided. SMEs will be supported throughout the entire process from scale-up strategies to commercialization to grow into mid-sized enterprises, and small merchants into small enterprises. In particular, an overseas local cooperation network centered on the Ministry of SMEs and Startups’ ‘Globalization Policy One Team,’ which connects policy capabilities, will be established. SBC serves as the secretariat in the SME support consultative body and as the office in the One Team consultative body.

Chairman Kang emphasized, “We will fully respond to national future challenges such as declining working-age population, regional extinction, and climate crisis to ensure the growth engine of SMEs does not stop.” To this end, they plan to attract and utilize overseas talent through industry-academia cooperation and internships for foreign students, expand domestic job cooperation models including exemplary prisoners and North Korean defectors, and solve vacant jobs through various manpower supply channels. Alongside this, they will create a business-friendly ecosystem for regional companies by activating the win-win growth network loan and global innovation special zones, and support ordering companies that need initial production funds on behalf of contracting companies. In particular, a new ‘K-Beauty Network Loan’ will be established to support payment to manufacturers for K-Beauty brand companies requiring initial production funds.

Furthermore, support systems will be established to secure carbon regulation response capabilities and strengthen SMEs’ ESG (environment, social, governance) capabilities tailored to field-level needs. Support for responding to the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) (emission calculation and verification), carbon reduction consulting, and facility support will be enhanced.

Chairman Kang added, “With a work attitude that adheres to basics and principles, we will professionally and efficiently support what companies truly want and need, and foster a fair and sincere working atmosphere among employees.” This means strengthening responsible management based on integrity, fair policy execution, attendance and service, security, and compliance with regulations and procedures. Additionally, policy services will be expanded through digital transformation response and big data-based work innovation to increase customer convenience.

Kang Seok-jin, President of the Small and Medium Business Corporation, is speaking at a press conference marking his first anniversary in office held on the 4th in Yeouido, Seoul.
[Photo by Small and Medium Business Corporation]

As major achievements during his first year in office, Chairman Kang cited focused support for SMEs in innovative growth sectors such as super-gap and new industries, diversification of job support projects to alleviate manpower shortages in SMEs through collaboration with the Ministry of Justice’s Correction Headquarters, and playing a central role in cooperation with related organizations such as the Korea Technology Finance Corporation and Korea Trade Insurance Corporation to create policy synergy.

He explained, “We supported the early establishment and successful execution of the government’s ongoing Global One Team initiative and swiftly implemented policy support responding to global carbon neutrality issues. Considering SMEs’ overseas expansion demand, we expanded overseas bases such as the Riyadh Global Business Center (GBC) and Tokyo K-Startup Center (KSC), discovered and supported 857 first-time export companies and export diversification companies exporting to an average of more than five countries, achieving export performance of 8.1 billion USD.”

Meanwhile, in response to a question about unsettled payments to SMEs related to TMON and WEMAKEPRICE during the Q&A session following the press conference, Chairman Kang replied, “Support is underway for about 100 billion KRW based on SME applications, with 70-80% progress, and almost all who requested a one-year extension have applied, so it is proceeding well. We plan to complete everything before Chuseok.”