The South Korean government will spend 10.1 trillion won ($8.85 billion) over the next three years to vitalize venture startups, the country’s finance minister said.
The spending plan - 2 trillion won for business startup, 7.4 trillion won for growth, and 700 billion won for reorganization - was approved in a cabinet meeting chaired by Finance Minister Yoo Il-ho who doubles as deputy prime minister.
“With proven technology, the government will assist from pre-business launch to growth,” Yoo said.
To stimulate startup and incubate entrepreneurs, the government will expand loan guarantees for startups and provide loan credit of up to 800 billion won to universities, research institutes and skilled employees, he said.
For existing startups, the state will provide grace on interest payment, cheaper lending rates, and greater loans on credit up to seven years since founding. To help companies better redeem investment and retry after failure, the state will establish secondary fund and simplify support procedures for multi-debtors, he said.
The government will also reform the visa system to draw more overseas talents.
By Lee Seung-yoon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]