The South Korean Ministry of SMEs and Startups (MSS) has unveiled an ambitious 2024 policy funding plan, allocating a substantial KRW 8.7 trillion (USD 6.6 billion) to bolster small and medium enterprises (SMEs) and microenterprises. 

This initiative represents a significant increase in funding compared to the previous year, with KRW 5 trillion (USD 3.88 billion) earmarked for SMEs and KRW 3.7 trillion (USD 2.81 billion) for microenterprises. This increase partly aims to support microenterprises grappling with financial challenges exacerbated by high-interest rates.

The SME Policy Fund focuses on offering long-term loans at lower interest rates, targeting SMEs with excellent technical business performance and potential for future growth. The fund distribution is as follows: KRW 1.9958 trillion for startups, especially young entrepreneurs and those in priority sectors; KRW 2.1424 trillion for the growth period, supporting SMEs in global market competition and smart factory adoption; and KRW 531.8 billion for the rebound period, aiding businesses facing economic challenges. Additionally, KRW 287.5 billion is allocated for the entire business cycle, including emergency management stability funds.

The Microenterprises Policy Fund, with a 23.7% increase from the previous year, totals KRW 3.71 trillion. This fund supports microenterprises in stabilizing their management and fostering growth. The allocations include KRW 1.11 trillion for general business stability, KRW 1.8 trillion for vulnerable microenterprises (including those with low credit or affected by disasters), and KRW 800 billion for promising microenterprises, encouraging innovative growth.

To enhance accessibility to these funds, the MSS plans several improvements. These include personalized funding guidance services, an advanced document submission system for SMEs, and digital enhancements to the Microenterprises Policy Fund website(https://ols.semas.or.kr). The website will feature a new status board for the application schedule, an online pre-diagnosis service, and a chatbot for loan management.

The application process for the SMEs Policy Fund begins on January 8, 2024, through the KOSME website, with staggered application dates based on company location. The Microenterprises Policy Fund will also start accepting applications on January 8, with certain programs like the direct loans and low-credit microenterprises funds having specific opening dates.

This comprehensive funding plan from the South Korean government aims to provide substantial support to SMEs and microenterprises, addressing their unique challenges and enhancing their ability to compete and grow in a rapidly changing economic landscape. Detailed information and application guidelines are available on the MSS website.