Village Enterprises and Medical Corporations to Receive Government Support... Framework Act on SMEs Amended

[Financial News] Village enterprises, self-sufficiency enterprises and medical corporations will soon be eligible for government support, including policy financing, technology development and market-access assistance.
 According to the Ministry of SMEs and Startups on the 22nd, an amendment to the 'Framework Act on Small and Medium Enterprises' containing these provisions was approved at a meeting of the State Council of South Korea that day.
 The current Framework Act on Small and Medium Enterprises includes not only for-profit enterprises that meet requirements concerning sales and total assets, but also certain corporations and organizations whose primary purpose is not profit-making. These include social enterprises, cooperatives, social cooperatives and consumer cooperatives.
 However, village enterprises and self-sufficiency enterprises, which are social solidarity economy enterprises that create social value in a similar manner, have faced restrictions in receiving government support because they were not recognized as small and medium-sized business entities.
 Medical corporations established under the Medical Service Act have also been excluded from the category of small and medium-sized business entities because they are nonprofit corporations.
 By contrast, private hospitals and clinics, as well as certain nonprofit medical institutions established by consumer cooperatives and social cooperatives, have been recognized as small and medium-sized business entities, creating concerns over unequal treatment.
 Under the amendment, village enterprises, self-sufficiency enterprises and medical corporations that meet certain requirements prescribed by presidential decree will also be recognized as small and medium-sized business entities. They will then be able to use various SME support programs, including policy financing, technology development and market-access assistance.
 Kim Dae-hee, director general for SME policy at the Ministry of SMEs and Startups, said, "We expect this amendment to reduce gaps in SME support policies for village enterprises, self-sufficiency enterprises and medical corporations, which have contributed to creating local jobs, helping vulnerable groups become self-reliant and providing local medical services."
[email protected] Kim Hyun-cheol Reporter