Government to Tighten Selection and Expand Support for Relaunching Small Business Owners

'Environment' Added to Business Relaunch Evaluation Criteria
Self-Funding Ratio for Relaunch Funds Reduced to 50%
Special Rechallenge Fund Now Available in First Year of Relaunch

The government is strengthening the selection criteria for business relaunch support for small business owners who have closed their businesses, and will provide more substantial support to those who are selected.

Yonhap News Agency

On September 13, the Ministry of SMEs and Startups announced these measures at the seventh roundtable discussion on "Strengthening Recovery and Safety Nets for Small Business Owners," held at Lycon Town in Jung-gu, Daejeon. The event was attended by officials from the Ministry of SMEs and Startups, representatives from the Small Enterprise and Market Service, small business owners preparing for or having successfully relaunched their businesses, and field experts.

First, the government will formally introduce psychological recovery programs to help small business owners who have experienced a sense of loss during business closure alleviate pre-employment depression and restore self-esteem, thereby expanding psychological support.

In addition, the selection criteria for the "Hope Return Package Business Relaunch Program," which supports small business owners in restarting, will be raised to enhance competitiveness. The existing evaluation items for business relaunch (such as previous business plans and representative's capabilities) will be supplemented with new factors, including the level of market saturation in the surrounding area. The performance of project managers dedicated to relaunch support will be evaluated based on the actual business outcomes of small business owners who received consulting. Top performers will receive incentives such as extended activity periods, while those with lower performance will have their participation restricted, ensuring a continuous inflow of outstanding experts.

Those small business owners who are selected through this process will receive more substantial support. The self-funding ratio for business relaunch funds (up to 20 million won) will be reduced from 100% to 50%. In addition, the Special Rechallenge Fund (up to 100 million won), which was previously available only in the year following business closure, will now also be accessible during the relaunch process. This change increases the maximum support a small business owner can receive in the first year of relaunch to 120 million won.

Financial support for small business owners who have relaunched will also be strengthened. Those who have received policy funds and have made faithful repayments for more than three years will be eligible for an additional Special Rechallenge Fund of up to 200 million won.

An official from the Ministry of SMEs and Startups stated, "Given the economic hardships small business owners face when closing their businesses, repeated closures can pose a critical risk. We will continue to support well-prepared entrepreneurs in making a fresh start through practical relaunch policies that can be felt in the field."