Three-Tier Customized Support Measures:
Normal, Potentially Recoverable, and Unrecoverable Companies
The Small and Medium Business Corporation (SBC) announced on the 22nd that it will implement special post-management measures to support small and medium-sized enterprises (SMEs) facing management crises due to the recent deterioration of both domestic and international environments.
This measure aims to detect early signs of insolvency and promote business normalization through customized support, in response to concerns over increased insolvency risks for export-oriented SMEs caused by changes in the trade environment, such as U.S. tariff actions.
The SBC will conduct a survey targeting companies that have received export-related financial support, such as new market entry funds, and classify them into three categories: normal, potentially recoverable, and unrecoverable. Follow-up actions will then be applied according to the characteristics of each group.
For companies classified as "potentially recoverable," the focus will be on resolving insolvency risks and supporting business normalization through tailored assistance, such as loan repayment adjustment programs and linkage to policy funds. In contrast, for "unrecoverable" companies, swift follow-up actions will be taken, including debt restructuring through the Restart Fund. This program will be implemented until September 5.
Kim Ilho, Director of Corporate Finance at SBC, stated, "The core goal is to enhance the recovery prospects of the 'potentially recoverable' group by diagnosing insolvency risks early and providing timely support to SMEs." He added, "We will continue to strengthen proactive post-management to address on-site difficulties and maximize the effectiveness of policy fund execution."
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