South Korea offers continuous support for crisis-hit small businesses

South Korea's Ministry of SMEs and Startups and the Small and Medium Business Administration (SMBA) are actively supporting small business owners in crisis through the "Hope Return Package" program. This initiative offers ongoing diagnostic and mentoring services aimed at helping struggling entrepreneurs achieve a stable recovery.

The program is designed to assist 1,200 small businesses identified as being in crisis. It involves expert on-site diagnostics to develop customized business improvement strategies, followed by intensive, personalized mentoring. Since May, the SMBA, regional credit guarantee foundations, and 17 commercial banks have been collaborating to monitor businesses for early signs of distress. Those exhibiting warning signs, such as loan delinquencies, a drop in credit rating, or significant recent payment delays for low-income individuals, receive a "crisis alert message."

Upon receiving the alert, selected small business owners undergo a "1:1 customized business diagnosis" where experts visit their premises to assess management capabilities and identify areas for improvement. Based on this diagnosis, tailored programs are provided. Following the diagnosis, dedicated project managers offer close support, with a minimum of three follow-up sessions. If requested, businesses can also receive additional "Chaeum Mentoring" to address specific technical challenges, up to two sessions.

Furthermore, businesses that complete the diagnosis and mentoring phases can access specialized programs. These may include networking events for entrepreneurs, opportunities to sell superior products, marketing support (both online and offline), assistance with market development, visits to successful businesses, psychological counseling, and therapy. The SMBA emphasizes its commitment to helping these entrepreneurs seize new opportunities for recovery and resurgence.

Applications for the program are accepted online through the official Hope Return Package website (hope.sbiz.or.kr) until November 12. However, early application is strongly recommended as the program may close sooner if regional budgets are exhausted. SMBA President In Tae-yeon stated, "The crisis alert message is a signal to help overcome management crises early on," and pledged full support to ensure that struggling entrepreneurs can find new opportunities for recovery.

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The crisis alert message is a signal to help overcome management crises early on. We will actively support struggling small business owners so they do not miss the right time for recovery and resurgence and can find new opportunities.