The Small and Medium Business Corp. (SBC) is devoting itself to creating jobs in accordance with the incoming Park Geun-hye government’s policy of attaching priority to small and medium-sized enterprises (SMEs). 

The SBC has set its 2013 goal of creating 13,172 jobs, up from 11,025 new jobs in 2012. In keeping with the national top policy goal of job creation, the SBC is employing three strategies °™ creating jobs by nurturing new startups, evolving startups into deep-rooted businesses, and sustaining jobs through marginal business conversion. 

The corporation, referred to as the “Smart Business Companion for SMEs,” plans to expand projects with bigger job creation effects as well as beef up policy fund loans, training, and other support. 

Policy fund loans are extended to startups, self-employed individuals, firms seeking business conversion, and companies wanting to increase employment through new investments. The corporation plans to increase the number of policy fund loan beneficiaries to 10,480 in 2013 from 9,492 in 2012. In this regard, the non-profit, government-funded organization has set aside 3.8 trillion won in SME Policy Loans for 2013, up from 3.6 trillion won in 2012. 

A program for nurturing young entrepreneurs with growth potential calls for creating jobs for 1,200 youth in 2013, up from the previous year’s 679 prospective youth entrepreneurs.

The SBC is striving to explore “hidden gem” SMEs considered as good as large-sized companies in terms of working conditions, welfare and future growth potential, and help young job seekers land employment there to ease the manpower mismatch. The corporation plans to increase the accumulative number of hidden gem SMEs from 503 in 2012 to 1,004 in 2013.

The corporation plans to expand a program for helping prospective university graduates and overseas SME trainees find jobs at excellent SMEs in Korea and abroad with the goal of increasing the number of beneficiaries to 420 in 2013 from 338 in 2012. 

The SBC has set aside 3.85 trillion won in 2013, a 15.5 percent jump from 3.33 trillion won in 2012 in  policy funds designed to offer a helping hand to SMEs in financial difficulties due to the delayed economic recovery and the worsening financial situation. 

The corporation plans to increase from 1 trillion won in 2012 to 1.2 trillion won in 2013  policy fund loans being extended on the basis of diagnosing SMEs’ woes and prescribing solutions in a way of innovating SMEs’ management and strengthening their competitive edge. 

Priority is given in extending the policy fund loans to start-ups, small firms, and SMEs related to technology commercialization and strategic industries, including green and growth engine industries, and companies located in provincial areas. The portion of direct provision of policy fund loans based on health checks of SMEs will be raised to 70 percent. 

In line with the government’s efforts to expedite R&D support for technology commercialization, the SBC has introduced a policy fund for the commercialization of R&D results on a pilot basis. The organization has allocated 15 billion won to the project designed to prevent the dying of R&D results and a success rate of commercialization through the early solution of financial difficulties. The corporation is now considering two options.

In an effort to promote shared growth and startup conditions in provincial areas, the SBC has decided to increase the percentage of youth startup businesses from provincial areas in a program of nurturing youth entrepreneurs from 22.5 percent or 51 people in 2012 to 33.3 percent or 100 people in 2013. Office and other support for building infrastructure are offered for would-be youth businessmen in the areas. 

Youth start-up centers, now in operation in 13 provincial locations, will be expanded to add three more in Chungcheongnam-do, Jeollanam-do, and Gyeongsangbuk-do. Six experts will be dispatched to each center. 

The SBC plans to expand a program for exploring excellent SMEs’ “smart products” and providing marketing support tailored to meet their needs. In particular, an experts’ conference will be established to promote objectivity of the select products, and cooperative consumers’ groups will be participating in the exploration of smart products. The corporation has a target of selecting 45 products in 10 categories in 2013, up from seven products in two categories in 2012. 

The SBC is now operating the revamped “SME Global Incubator” tailored to offer a package of support ranging from global startup to technology and experts’ providing consulting services to policy fund loan recipients linked to exporting.

The corporation is lending an ear to SMEs’ voices in the field. The SBC is serving as a liaison for collecting and relaying to the government complaints and grievances from SMEs in the field. The corporation’s vast nationwide network explored and delegated 150 policy recommendations for the past two years, 24 cases of which were reflected in government policies. The SBC has a 2013 target of reflecting 20 recommendations from SMEs into government policies.