Home » Economy » Ministry of SMEs and Startups Next year’s budget of 19 trillion won… 2.2 trillion won in compensation for small business losses

Ministry of SMEs and Startups Next year’s budget of 19 trillion won… 2.2 trillion won in compensation for small business losses

The loss compensation budget is 400 billion won higher than the government plan… Lower limit 100,000 won → 500,000 won
Establishment of ‘Preemptive Management Improvement Program’ for small businesses in crisis of business closure
Online entry for small businesses and full-scale promotion of subscription economy business

The Ministry of SMEs and Startups’ budget for next year has been finalized at 19 trillion won.

The Ministry of SMEs and Startups announced that the budget for next year, which is an increase of 13.1% (2.2 trillion won) from this year’s main budget (16.8 trillion won), passed the National Assembly plenary session on the 3rd.

This is an increase of 1.161 trillion won compared to the government plan.

The Ministry of SMEs and Startups’ budget for next year focuses on three key investment directions: ▲ management recovery and strengthening competitiveness of small business owners ▲ global innovative venture/startups ▲ fostering local small and medium-sized enterprises (SMEs) and job creation.

The budget for loss compensation for small businesses in the fourth quarter of this year and the first quarter of next year was set at 2.2 trillion won, an increase of 400 billion won from the original government plan of 1.8 trillion won.

The lower limit for loss compensation for small businesses has been raised from 100,000 won to 500,000 won.

This is a budget to compensate for the loss of small business owners caused by the government’s direct quarantine measures such as gathering bans and business restrictions.

As for the loss compensation for small businesses in the third quarter, which has been in effect since October 27, 1.65 trillion won was paid to 560,000 people until the 1st of this month.

1,190.4 billion won was added to the budget for policy funds to provide low-interest funds for small businesses, and the total was confirmed to be 1.9 trillion won.

In addition, the ‘Preemptive Management Improvement Program’ was newly established to diagnose problems and provide funds for management improvement for small business owners in crisis, reflecting a budget of 23.8 billion won.

90.5 billion won is reflected in the budget for supporting 60,000 small business owners to advance online and for subscription economy (regular payment) support.

Onnuri gift certificates will be issued in the amount of KRW 3.5 trillion.

The budget for online export joint logistics to expand the export base of SMEs, support for joint overseas market development, and support for logistics exclusive export vouchers has also been increased.

KRW 5.5 billion for new projects such as support for carbon-neutral transition of SMEs for the transition to a carbon-neutral economy such as decarbonization, KRW 1.25 billion for carbon-neutral industrial ecosystem construction projects to spread the environment, society and governance (ESG) of SMEs Each was newly organized.

In order to support venture businesses, the budget for fostering ‘Baby Unicorn’, an innovative company with a corporate value of less than 100 billion won, has been expanded from 18 billion won this year to 30 billion won next year, increasing the number of support targets from 60 to 100.

Ministry of SMEs and Startups Next year’s budget of 19 trillion won…  2.2 trillion won in compensation for small business losses

/yunhap news

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