Same-Industry Restarters Now Eligible for Startup Support from Jungjingong

Implementation of the "Startup Recognition System for Same-Industry Restarters"

On July 18, Jungjingong (Korea SMEs and Startups Agency) announced the introduction of a new system that grants startup status to entrepreneurs who restart businesses in the same industry after closing a previous one, but who have previously been excluded from government support due to not being recognized as startups.

Until now, if an entrepreneur closed a business and then restarted in the same industry, the new business was only recognized as a startup if it was launched more than three years after the previous closure (or two years in cases of bankruptcy or insolvency). As a result, entrepreneurs who restarted in the same industry within three years of closure were excluded from various government startup support programs.

Jungjingong

To address these challenges faced by such entrepreneurs, the Ministry of SMEs and Startups revised the Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, which came into effect on June 12. Under the revised decree, entrepreneurs who restart in the same industry and demonstrate strong recovery capabilities?such as possessing new technology or introducing innovative business models?can exceptionally be recognized as startups, regardless of the length of their business closure period.

In line with this amendment, Jungjingong has introduced the "Startup Recognition System for Same-Industry Restarters." Under this system, restarters can apply for the "In-depth Evaluation of Sincere Management (Startup Recognition Track)." Upon passing the evaluation, they receive a "Certificate of Passing the In-depth Evaluation of Sincere Management (Same Industry)." When verifying startup status, the period of previous business closure for same-industry restarters is excluded from the assessment criteria by the startup verification agency.

Kim Ilho, Director of Corporate Finance at Jungjingong, stated, "With the introduction of this system, entrepreneurs who restart in the same industry within three years of closure can now be recognized as startups." He added, "We will actively support restarters who have been in the blind spot of government support so that they can benefit from startup support programs and successfully make a new start."