"Failure Is an Asset for Success"... Government to Establish 1 Trillion Won Re-Challenge Fund Over 5 Years

2 Billion Won in Restructuring Funds to Be Provided Next Year
Fast-Track System for Swift Business Closure and Bankruptcy Support

The government has announced plans to establish a re-challenge fund of over 1 trillion won over the next five years to support entrepreneurs who have experienced failure and to encourage them to try again.

Minister Han Sung-sook of the Ministry of SMEs and Startups is delivering opening remarks at the "Policy Field Tour for Revitalizing Re-entrepreneurship and Re-challenge" held at Daejeon Startup Park. Ministry of SMEs and Startups

On December 11, the Ministry of SMEs and Startups announced that it held the launch ceremony for the "Re-Challenge Support Headquarters" at COEX in Gangnam-gu, Seoul, with over 100 participants, including re-startup companies, private associations and organizations, academia, and related institutions, to promote the value of taking on new challenges. The Re-Challenge Support Headquarters will be led by the Korea Youth Entrepreneurship Foundation, with participation from organizations such as the Korea Startup Forum, the Korea Venture Business Association, the Korea Federation of SMEs, as well as academic experts including professors from Hanyang University.

This launch event was held under the slogan "Together for Your Challenge, Bigger and Bolder." Han Junghwa, Chairman of the Korea Youth Entrepreneurship Foundation, expressed his ambition, saying, "We will take the lead in spreading a re-challenge culture that transforms failure into experience and assets, and setbacks into stepping stones for new leaps." Park Joohyuk, CEO of HexaEye and a re-startup entrepreneur, stated, "I hope the Re-Challenge Support Headquarters will become more than just an event-driven organization, but a true partner and support platform for entrepreneurs getting back on their feet."

Starting with an on-site meeting in January next year, the Re-Challenge Support Headquarters plans to continue nationwide initiatives such as the "Failure Concert," "Regional Startup Festival," "Re-Challenge IR," and the "Re-Challenge Entrepreneurship Policy Forum." During the third week of November, in conjunction with Global Entrepreneurship Week, a "Re-Challenge Day" will be held to present the year's journey of challenges and share achievements.

On this day, the government also announced implementation plans to support the recovery and growth of re-challenge companies. To strengthen the social foundation for re-challenging, the government will provide restructuring funds (2 billion won next year) for companies showing signs of crisis, such as those undergoing rehabilitation, and will expand and operate a fast-track system to support the swift recovery and bankruptcy procedures of self-employed individuals seeking a fresh start. Next year, the Enforcement Decree of the Startup Support Act will be amended to shorten the period during which re-startups in the same industry are not recognized as startups from the current three years to one year, thereby encouraging quicker re-entry into entrepreneurship.

From next year, measures will also be promoted to limit joint liability in all venture investments, including startup accelerators and new technology finance companies. Legal advisory support and administrative procedure guides will be provided for the complex closure process, and healing and psychological reinforcement programs will be implemented for companies closing down or re-challenging.

In addition, over the next five years, a re-challenge fund of over 1 trillion won will be established, and next year, 100 billion won in policy funds will be supplied for re-challengers who have difficulty accessing private financing. Furthermore, to support re-startups tailored to the characteristics of youth and middle-aged entrepreneurs, a dedicated track will be created within startup support programs, and customized education will be strengthened.

Minister Hansung-sook stated, "With today's launch ceremony as a starting point, the government, private sector, institutions, and local communities will work together to support re-challengers," adding, "I hope the launch of the Re-Challenge Support Headquarters will mark the beginning of a new journey forward, where entrepreneurs taking on new challenges are not alone but move forward together with everyone."