The amount of funds raised for the Small and Medium Business Policy Fund, which focuses on investing in materials, parts, and equipment companies, has surpassed 1 trillion won as of June.

The Ministry of Trade, Industry and Energy (Minister Seung-wook Moon) announced on the 21st that the Materials, Parts and Equipment Investment Agency Council, the Korea Institute of Industrial Technology Evaluation and Planning, the Korea Development Bank, and private investment agencies signed a ‘Business Agreement for Activating Investment in Materials, Parts and Equipment’ at the seminar room on the 4th floor of COEX.

The business agreement signed that day was to support the creation of investment performance through the New Deal Fund's investment in promising small and medium-sized enterprises, and to establish a mutual cooperation system between specialized institutions specializing in the small and medium-sized enterprise industry and policy-oriented New Deal Fund financial institutions.

Through the MOU signing on this day, each organization agreed to prioritize cooperation in discovering promising investment projects in the New Deal sector.

By analyzing the value chain of 200 New Deal items defined in the New Deal Investment Joint Standards, we will build a database of key materials, parts, and equipment essential for producing each item, as well as small and medium-sized enterprises (SMEs) that operate related businesses. We will also provide opportunities for meeting online and offline between SMEs seeking investment and New Deal Fund private investment institutions. We will also open an exchange program between investment institutions and SME industry experts to stimulate investor interest in the SME industry.

In addition, the Ministry of Trade, Industry and Energy plans to provide up to 3 billion won in R&D funds to small and medium-sized enterprises that have successfully attracted investment from the New Deal Fund and other sources, and have been recognized for their growth potential and compliance with policy objectives, starting in 2022.
br /> Separately, the amount of funds raised through the Small Business Policy Fund, which was created after Japan's export restrictions in July 2019 and focuses on investing in small and medium-sized enterprises, exceeded KRW 1 trillion as of June 2021.

Participants evaluated that investment resources nearly double the combined investment amount of the Small Business Policy Fund over the past 20 years prior to Japan's export restrictions were quickly raised in just one year since the fund's creation.

The government plans to create an additional small business fund worth more than 600 billion won this year.

Private investment institutions such as BNW Investment and Korea Investment Partners, which participated in the event that day, presented major cases of investment in small and medium-sized enterprises. BNW Investment’s Managing Director Seok-Joo Kim stated, “As Korea is a global powerhouse in key materials and components such as semiconductors and secondary batteries, we believe that the investment outlook for the small and medium-sized enterprise industry is very bright.”

In his congratulatory remarks, Director Lee Kyung-ho of the Materials, Parts, and Equipment Cooperation Bureau at the Ministry of Trade, Industry and Energy said, “In order to successfully promote the Korean New Deal, the Small and Medium Business Administration will firmly support the digital and green transformation of key industries and the creation of new industries.” He added, “I hope that with today’s business agreement as an opportunity, investment resources for the growth of small and medium business companies will further expand, and the small and medium business industry and the financial sector will closely cooperate to create various investment success stories.”