The government decided to raise 1,000 innovative Green startup companies to have global competitiveness by 2013. In addition, it will promote a Green Factory Movement program for existing small and medium size companies to adapt both their products and management styles to be more environmentally friendly.
The Small and Medium Business Administration (SMBA) announced five tasks for raising innovative Green startup companies and promoting Green management on the 10th of this month.
Hong Suk-woo, Administrator of the SMBA, said: “Most small enterprises don’t have enough information about Green regulations, suffer from a manpower shortage and lack money. We plan to promote strategic R&D investment in promising Green technologies and inspire people to start Green businesses. Through these actions we will try to expand the base of Green industries.”
The SMBA especially wants to support the LED business because it is easy to start up a new business, and it can work even with the poor management of smaller companies.
The Administration will also try to unburden initial difficulties for startup companies. The government currently provides tax relief only for companies which are not in the Seoul metropolitan area, but from next year it will expand that tax relief also to companies which are in Seoul. Moreover, the SMBA plans to establish specialized Green support centers and on-campus university centers which are managed by Green companies. Also it plans financial support for small and medium sized companies, lessening the debt ratio of Green startup companies. Related to this, the Korea Credit Guarantee Fund (KODIT) has decided to raise its guarantee limit from 7 billion won (US$4.68 million) to 10 billion won (US$6.68 million).
The SMBA plans to increase its R&D investment ratio from 10 percent to 20 percent by 2012, and will support supply chain relationships between smaller enterprises and conglomerates. Also, the Administration intends to provide several privileges to companies selected as Green businesses such as tax privileges, funds, R&D, manpower, and aid in opening new markets. According to the plan, the Administration will set standards by October and find out about specific tasks and hopeful cases in the latter half of the year.
