Government to Launch Crowdfunding Campaign for Small Businesses

According to the Ministry of SMEs and Startups on Thursday, a government branch set up under the Moon Jae-in government last month, a number of government-backed campaigns will be held throughout the year to promote crowdfunding for small and medium-sized enterprises with creative ideas and new business models. (Image: Kobiz Media)

SEOUL, Aug. 25 (Korea Bizwire) — The South Korean government is set to launch a crowdfunding campaign for small and medium enterprises with creative ideas in a bid to promote and boost private investment.

According to the Ministry of SMEs and Startups on Thursday, a government branch set up under the Moon Jae-in government last month, a number of government-backed campaigns will be held throughout the year to promote crowdfunding for small and medium-sized enterprises with creative ideas and new business models.

The government’s latest move comes in wake of a tepid local response to crowdfunding, a practice of funding a project or business by raising contributions from a crowd of people, as the issue is taking its toll on many small businesses in need of initial investment.

Applications are open from August 28 to October 10 for those who have established an enterprise within the last seven years, those who plan to open a business and those with business ideas.

Including a cover letter evaluation, a mock funding contest and the final round, participants will go through a total of three steps from October to December.

The Ministry of SMEs and Startups is prioritizing creative and new business ideas, with plans to reward winners with an award from the minister, a cash prize and incentives for next year’s crowdfunding policy.

For more information, visit the official website of the Small Enterprise and Market Service.

Ashley Song (ashley@koreabizwire.com)