"Early-Stage Startups Need Eased Financial Requirements for Support Program Participation"

SME Ombudsman Holds S.O.S. TALK in Chungcheongnam-do Region

It is anticipated that financial requirements will be relaxed so that early-stage startups are not excluded from local government corporate support programs solely due to temporary capital impairment.

On September 10, the Small and Medium Business Ombudsman, together with the Korea SMEs and Startups Agency, held an 'S.O.S. Talk' session at Anmicro Systems in Cheonan, Chungcheongnam-do.

S.O.S. Talk is a joint forum hosted by the Small and Medium Business Ombudsman and the Korea SMEs and Startups Agency to resolve regulatory challenges facing SMEs and startups. Approximately 19 participants attended this session, including Ombudsman Choi Seungjae and representatives of small and medium-sized ventures in the Chungcheongnam-do region, discussing regulatory and practical challenges faced on the ground.

Choi Seungjae, Small and Medium Business Ombudsman, is holding an S.O.S. Talk meeting for the Chungnam region on the afternoon of the 10th at Anmicro Systems in Cheonan, Chungcheongnam-do. Small and Medium Business Ombudsman

One key proposal was to ease financial requirements for early-stage startups participating in local government business support programs. Oh Seokho, CEO of Wint, a manufacturer of semiconductor precision components, stated, "Securing equipment and developing technologies requires upfront investment, which may temporarily result in capital impairment. However, we are excluded from support programs simply because of this, even when we have significant growth potential and need support the most."

In response, Chungnam Technopark expressed agreement that temporary capital impairment can occur due to initial investment and R&D expenses in early-stage startups. They stated they would review creating exceptions so that companies established within the past three years are not excluded from support solely due to capital impairment. Going forward, Chungnam Technopark plans to evaluate both technological capability and business viability through technology assessments. The updated criteria for exclusion and exceptions related to capital impairment are expected to be reflected in the 2027 program announcements.

There was also discussion about the issue of companies located outside specialized industrial complexes being marginalized from policy support. An Heetae, CEO of Anmicro Systems, a display automation equipment manufacturer based in Cheonan, pointed out, "Even though we are part of the same industry supply chain, we are unable to even apply for certain support programs simply because our factory is outside the specialized complex. Considering client relationships, workforce, and logistics costs, it is not easy to relocate a factory, so I propose that policy support be expanded to consider participation in the regional industrial supply chain, not just factory location." Chungnam Technopark explained that, with respect to R&D, testing facilities, and workforce development programs in the Chungnam Display Specialized Complex, companies outside the designated complex are already eligible for support. They further clarified that this year's announcement of "2026 Chungnam Display Specialized Complex R&D Consulting Support" was designed as a small-scale pilot project focused on resident companies, as there had previously been no such dedicated support programs, aiming to increase policy understanding and awareness among those companies. Looking ahead, they stated they would work with relevant organizations to consider expanding support to display companies outside the specialized complex in Chungcheongnam-do for the 2027 program cycle.

Additionally, attendees raised various other on-site regulatory and practical issues, such as: expanding the scope of main working hour restrictions for foreign employees at SMEs; promoting long-term employee retention and productivity through more flexible 52-hour workweek arrangements; and establishing detailed standards following revisions to the Enforcement Decree of the Specialized Credit Finance Business Act. Ombudsman Choi Seungjae stated, "We will continue working with relevant ministries to ensure that companies with growth potential are not excluded from support simply due to a single financial statement entry or factory location, so that improvements are tangible for businesses on the ground."

This content was produced with the assistance of AI translation services.