The South Korean Ministry of SMEs and Startups (SMBA) has announced a significant measure aimed at supporting small business owners who have stores within Homeplus, a leading supermarket chain. Starting November 3rd, the SMBA will switch from a guaranteed loan system to a direct loan system, allowing these small businesses to access emergency management stabilization funds without the need for extensive credit assessments from banks. This initiative is a response to requests made by small business owners during a meeting with the ministry’s second vice minister, Lee Byeong-kwon.

Previously, small business owners had to undergo a two-step loan approval process involving a guarantee institution and a bank credit check, which often delayed financial aid. The new direct loan process implemented by the SMBA will rely solely on document reviews conducted by the Small Enterprise and Market Service (SEMAS), simplifying access to much-needed funds for these businesses. Furthermore, the ministry stated that small businesses could access these funds even if their Homeplus locations are subject to seizures due to local tax defaults, ensuring that financial assistance is available regardless of external financial pressures.

Starting from 10 AM on November 3rd, small business owners affiliated with Homeplus will be able to apply for these direct loans through the Business Support Policy website. For any inquiries, they can contact the SEMAS regional headquarters or the unified small business call center, indicating a well-structured support system for local businesses that are often vulnerable amidst economic challenges.