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FSC chief on bus tour for SMEs

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By Oh Young-jin
  • Published Nov 20, 2011 5:56 pm KST
  • Updated Nov 20, 2011 5:56 pm KST

Kim Seok-dong, chairman of the Financial Services Commission (FSC), is taking a two-day bus tour to take a first-hand look at difficulties facing the nation’s small and medium-sized enterprises (SME) today, according to officials.

Kim’s itinerary includes stops at a start-up incubator in North Chungcheong Province; a science-technology complex in Jeonju, North Jeolla Province; a technology park in Busan and an industrial complex in Daegu.

Kim’s tour is organized to survey people working on the frontlines of Korea Inc. and have them reflect what is being worked on as a comprehensive package to financially boost the sagging SME sector.

According to sources, Kim is leading a government effort to overhaul the existing policies aimed at helping small firms, seeing them as a key source of new employment to help ease the severe youth jobless rate.

Although they didn’t elaborate about the content, it is strongly speculated that incentives such as the provision of immunity for those who fail on a start-up fund is included with devices aimed at preventing abuses.

Joining Kim on his tour are Chin Young-wook, president of the Korea Finance Corp.; Ahn Taik-soo, chairman of the Korea Credit Guarantee Fund; Cho Jun-hee, chairman of the Industrial Bank of Korea and top officials in charge of lending to small companies from five commercial banks, FSC officials said.

They added that the tour is part of Kim’s inclusive efforts that will last until the end of the first quarter next year to receive feedback directly from workers and their employers, aimed at bring drastic improvements to the way they can gain access to credit. The package will also affect not just banks but also the secondary financial sector.

“The ultimate goal is an overhaul of the lending environment to small- and medium-sized firms,” an FSC official said.

Also unveiled as a potential move is bringing order to the KOSDAQ, the smaller of the country’s two stock markets, to more efficiently raise funds and improve the credibility of the credit rating system.

The FSC believes that the global economic crisis is putting an added strain on small businesses, requiring comprehensive and drastic measures to address their difficulties.