Hello, dear readers.
How have been lately? Some might be busy for schoolwork and others might be busy preparing to get a job or preparing their own start-up businesses. As I get older, I see many students in school who try to or already started to run their own business. For financial environment is pretty unstable these days, I applaud them for their boldness of starting up their own business no matter what. Starting up a business bears high risk; you can earn lots of money only with small creative idea, but it can go bankrupt anytime. Since start-up business plays major role in creating new jobs, however, it is important for the government to create sound financial “environment” for them to take less risk. As creative economy is one of the mission plans of President Park and start-up business falls under the category of creative economy, President Park along with Financial Services Commission (FSC) announced a big plan to make sound financial environment for start-ups.
This plan consists of three steps which provide support before the start-up, after the start-up, and in the case it goes bankrupt. There are many backup plans under those three steps but today, I would like to introduce to you ‘start-ups prior warranty system’ (tentatively named), start-up supporting services, and supporting measure in case of failure.
First of all, tentatively named ‘start-up prior warranty system’ was introduced to examine the business potential and forecast expected financing. The objective of this system is to fully prepare start-ups which raises the chance of success. The subject of this system is soon to be start-ups with excellent technology or brilliant idea. Through preliminary technology examination, prior warranty will be issued which stipulates the amount of aid and the period support will be provided. According to different evaluation grades, maximum 500 million won will be supported. If you have good business item, this system will financially support you.
With the help of ‘start-up prior warranty system’, you could successfully start your own business. But there are still many difficulties ahead of you. For small- and medium-sized enterprises (SMEs) like you, KONEX was established to provide financial support especially for SMEs. We have dealt with KONEX on our previous posting. More to that, ‘Crowd Funding’, which is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet (definition from Oxford), and ‘Intellectual Property Funds’ that aims to invest in small and mid-size enterprises (SMEs) with promising intellectual properties such as copyrights and patent were introduced as well. Those systems will be further explained in later postings. Basically, you will be provided with startup edu-programs. “Youth Business Incubation Center” of Banks Foundation for Young Entrepreneurs will actively engage in helping start-ups. Moreover, affiliation with domestic and overseas institutions will build youth start-up infrastructure and start-up network. After you start your own business, there are numerous ways to get help.
Even with those help, the business can go bankrupt. You tried as hard as you can, but maybe you couldn’t help it. For those of you who suffer from failure, Credit Counseling & Recovery Service established division to give you one more chance. If revival is determined to be possible, those businesses will be supported again. Even for those who engage in food and beauty industry, this support can be provided.
How do you feel about this full package system? This effort of Financial Services Commission (FSC) is not about suggesting one policy but a revolution to build sound financial environment. As you can see, this is not a one-time thing but a full package which includes lots of backup plans for your start-up. This is just the beginning, and I hope all those systems will work out well. If you or friend of yours is preparing start-up business, let them know this useful information. I’ll come back with more useful info next time.
By Yeajin Shim (firstname.lastname@example.org)