Minister Oh Young-joo of the Ministry of SMEs and Startups (hereinafter referred to as the MSS) held a 'Revival Support Project and Social Safety Net Discussion' at the Seoul Central Revival Support Center on the 14th and announced the '25-year policy direction.
Before the meeting, Minister Oh Young-joo had a chance to encourage officials from the Small Business Seoul Central Support Center, the front line of small business support.
At the meeting held afterwards, the policy direction for the 2025 Small Business Revival Support Project was announced with the participation of small business owners and experts. In the meantime, the Ministry of SMEs and Startups has been operating a TF with the participation of related ministries and private sector experts since October of last year to prepare a 2025 revival support plan.
The policy direction for the 25-year recovery support project is as follows.
First, ▲ we plan to introduce a fast track to shorten the period required for rehabilitation, bankruptcy, and workout for the debt adjustment of small business owners, and link it with recovery support projects and financial support after debt adjustment.
Next, ▲ in the employment sector, we will expand and reorganize customized employment education programs, and strengthen employment support through customized consultations, such as conducting online and offline education in consideration of the livelihood and educational conditions of small business owners who are (or will be) closing down.
We will promote specialized employment programs (Ministry of SMEs and Startups Hope Return Package + Ministry of Employment and Labor National Employment Support System) through collaboration with relevant ministries (Ministry of Employment and Labor, Financial Services Commission) to provide allowances during job training and job activities and expand the payment of job success allowances to encourage employment. We will also help restore credit by providing preferential principal reduction rates (up to 80→90%) through debt adjustment upon completion of training.
▲ In the re-challenge (re-establishment) field, we will support small business owners who are experiencing a management crisis or have closed down by diagnosing and improving their management status so that they can manage and revive their businesses stably, and we will enhance the support system by matching them with dedicated PMs to provide in-depth mentoring, so that they can successfully improve their management.
If the diagnosis results confirm the closure of the business, support is provided through a specialized employment program, or basic education (6 hours or more) and practical education (within 24 hours) are provided to suggest the direction of the re-establishment business and to encourage a management mindset in order to support prepared re-establishment. In addition, a PM dedicated to strategic tasks (up to 7.5 months: up to 10 times) is assigned to support the re-establishment (re-establishment) business (up to 20 million won).
Fourthly, ▲ as the number of small business owners going out of business increases, we will expand business reorganization consulting, legal and debt consulting, and store demolition cost support (previously 2.5 million won → up to 4 million won) to ease the burden of business closure procedures.
In addition, ▲ in the social safety net sector, application and payment procedures will be simplified to increase the employment insurance subscription rate of small business owners and the self-employed. The Yellow Umbrella Mutual Aid Association will expand the number of contracted institutions* (currently 3) that provide financial products with preferential conditions, and strengthen its role as a social safety net by increasing the income deduction limit (expanding the 100 million won or less to 1 million won, and creating a new 40 million to 60 million won section) and promoting the alleviation of tax burden on surrender refunds (previously 15% other income tax → improved retirement income tax 3%).
Lastly, ▲the Ministry of SMEs and Startups has reorganized its organization to launch the Small Business Management Stabilization Support Team and has also significantly increased its personnel. In the future, it plans to systematically support policies to overcome and stabilize the management crisis of small businesses, such as support for small business recovery.
Minister Oh Young-joo said, “The public and private sectors are making every effort to provide rapid recovery support to small business owners and self-employed individuals in crisis. In particular, we will do our best to quickly execute the 245 billion won budget for the Hope Return Package for Small Business Recovery Support, which was significantly increased this year,” adding, “We will continue to listen to the voices from the field and strive to reflect them in policy so that they can find hope through recovery support projects and social safety nets.”
You can check the details through the '2025 Hope Return Package Business Announcement' or the Hope Return Package website .
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