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Economy & Investment News

  • Seoul Conducts Factual Survey for Protection of Local Businesses

  • Economy & Investment News SMG 117

    The Seoul Metropolitan Government (SMG) will conduct a factual survey for deciding on SME-suitable business areas.

    “SME-suitable business areas” operate as a system to seek reasonable division of roles between large enterprises and SMEs by designating business areas in which SMEs can display their competitiveness. The term of designation is three years and it can be extended for three more years through agreement. Large enterprises will be advised to limit their entry in to designated business areas.

    The SMG is the first local government to support the factual survey for presenting the grounds of the rightfulness of designation of SME-suitable business areas since 2016 for organizations that find it difficult to apply to become such a business and securing the basic data required for coming to an understanding with major companies. The SMG is also enhancing the competitiveness of existing designated business areas through customized consultation while supporting business areas whose designation will expire for designation as “livelihood-suitable business areas,” leading to an enforced limitation on the entry of large enterprises.

    This year again, the SMG will accept the application for the support of the factual survey until Apr. 22. For the designated business areas, it will take three to four months to present the grounds for the appropriateness of the designation based on the factual survey, and the business areas will be supported with the required documents for filing their applications.

    Also for existing designated business areas, the SMG will enhance their competitiveness by providing everything from support for finding business models to business consultation for finding markets and marketing. Business areas whose designation will soon expire can apply for consultation to be designated as a “livelihood-suitable business area.” The barrier to entry to be designated as a “livelihood-suitable business area” is low. If a small business is designated as one in many fields, the entry and expansion of large enterprises are prohibited for five years, which guarantees powerful protection for small businesses.

    The SMG will offer support for various aspects to create commercial areas where small business owners can feel safe as they operate their business and raise competitiveness for themselves.