Korea vows to expand assistance to small firms

Published : Mar 22, 2017 - 17:03 Updated : Mar 22, 2017 - 17:03

South Korea's top economic policymaker pledged Wednesday to increase financial assistance to promising startups and small companies as part of efforts to boost their competitiveness.

Finance Minister Yoo Il-ho said the government will expand assistance in research and development for aspiring entrepreneurs with high growth potential, and small and medium-sized enterprises.

Finance Minister Yoo Il-ho speaks in a meeting with more than a dozen leaders of small firms in Seoul on March 22, 2017. (Yonhap)

He made the announcement in a meeting with more than a dozen leaders of small firms, though he did not provide any further details.

South Korea has taken a series of steps to boost startups in a country where many people are still reluctant to take risks and start their own businesses, mainly because failure carries social stigma and makes it hard for a person to rebound.

Yoo said the fourth industrial revolution will offer business opportunities to promising SMEs, citing Uber and Tesla as good examples of success stories.

The fourth revolution is characterized by many technologies in the digital, biological and artificial intelligence fields merging together to create economic and social systems that can impact everyday lives for the better.

He said the government will lay the groundwork to make sure that smaller-sized firms can secure global competitiveness and push forward innovation.

South Korea has said it plans to inject 1.6 trillion won ($1.4 billion) over the next 10 years to foster nine core technologies, including artificial intelligence and virtual and augmented reality, as part of efforts to prepare for the future. (Yonhap)