South Korea's Ministry for Startups Allocates $1 Billion Aid for SMEs
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Seoul, Jan 8 (NationPress) On Wednesday, the Ministry for Startups revealed plans to allocate 1.5 trillion won (approximately $1.03 billion) in financial assistance to small and medium-sized enterprises (SMEs) in South Korea that have experienced trade disruptions due to the recent decline of the local currency.
This announcement is part of the Ministry of SMEs and Startups’ strategy for the year, as reported to acting President Choi Sang-mok, according to the Yonhap news agency.
In recent times, many small businesses in the nation have faced significant losses in their trading activities as the Korean won has sharply depreciated amidst a growing political turmoil and economic challenges, with the currency dipping below 1,470 won per dollar during intraday trading last month, marking its lowest level in nearly 16 years.
The ministry also announced plans to establish a 1.9 trillion-won fund aimed at revitalizing the venture capital market and nurturing 1,000 startups in key industries such as system semiconductors and artificial intelligence by 2025.
As part of its initiative, the ministry will enhance its programs to facilitate collaboration between startups and large corporations and will develop a K-startup Silicon Valley town, an organization dedicated to assisting local startups in entering the U.S. market.
Moreover, it aims to boost exports of Korean beauty and food products, alongside media content and technology services, through the establishment of a K-beauty global fund and a collaborative fund with Saudi Arabia for local gaming companies aspiring to penetrate the Middle Eastern market.
The ministry also announced plans to conduct a thorough examination of unfair business practices within the delivery platform sector.
Last month, the government pledged to implement measures to alleviate the financial pressures on small merchants stemming from delivery app commission fees and other business challenges, as part of efforts to enhance sluggish domestic consumption.
