KBIZ Expands Project to Support ‘New Start Fund-Yellow Umbrella Jump Support Fund’

Minister Cho Tae-yeol of the Ministry of Foreign Affairs (MOFA), Minister Oh Young-joo of the Ministry of SMEs and Startups (MSS) poses with about 200 SME representatives, including KBIZ Chmn. Kim Ki-mun as they had a meeting to ramp up communications at KBIZ headquarters in Yeouido, Seoul, on March 22. (Photo: MOFA)

The Korea Federation of Small and Medium Business (KBIZ) said on March 3 KBIZ is expanding a project to support “New Start Fund-Yellow Umbrella Jump Support Fund” targeting small business owners who have been paying back debts faithfully under an MOU on comeback support for small business owners the federation struck with the Small Business Owner New Start Fund.

The latest project is being implemented to help faithful debtors of the New Start Fund cope with management crises, such as business closure through Yellow Umbrella and build stable life foundation.

Small business owners who have paid back debts can receive greater support as beneficiaries have been expanded regardless of debtor and debt types to include intermediary-type debt rescheduling from the conventional purchase-type debt rescheduling.

The Jump Support Fund is going to pay 100,000 won to each small business owner who signs up for the Yellow Umbrella until Dec. 15, 2026 and pay back his or her debt according to the New Start Fund’s purchase-type or intermediary-type debt rescheduling.

Would-be beneficiaries are required to submit a certificate designed to confirm the repayment of the New Start Fund or a document designed to confirm the implementation of a debt repayment plan issued by the Credit Counseling and Recovery Service (CCRS).

In the case of full repayment debtors, they can be replaced by the debt repayment certificate issued by the New Start Fund or the certificate of completion of debt repayment plan issued by CCRS.

Lee Chang-ho, head of the Mutual Aid Business at KBIZ, said, “It is more important to give an opportunity for faithful debt repayment small business owners to make a comeback, and more small owners are given the chance to continue their business through the Yellow Umbrella as the scope of beneficiaries has been expanded to reduce blind spots.”

The number of subscribers who have signed up for the Yellow Umbrella, which made its debut in 2007, stands at 1.86 million.

The mutual aid fund has served as a kind of “social safety net” in which subscribers are given benefits, such as income tax deduction worth 6 million won annually and a function of lump-sum savings.

MOFA, MSS and KBIZ Join Forces to Give a Helping Hand to SME Exporters

Minister Cho Tae-yeol of the Ministry of Foreign Affairs (MOFA), Minister Oh Young-joo of the Ministry of SMEs and Startups (MSS) had a meeting with about 200 SME representatives, including KBIZ Chmn. Kim Ki-mun to ramp up communications at KBIZ headquarters in Yeouido, Seoul, on March 22.

The meeting was designed to help SMEs ease complaints and grievances they experience while exporting their products and explore ways of invigorating their global market entry in cooperation with MOFA and MSS.

MOFA, MSS and KBIZ struck a tripartite MOU to ramp up support for SME exporters and they agreed to ramp up mutual support and alliance and promote cooperation.

Participating companies explained stumbling blocks and grievances, such as lack of information and local legal issues.

MOFA and MSS said they will form a “one team” with related support institutions, such as KOTRA and KOICA as well as banks and law firms stationed abroad to support globalization of SMEs.

The two ministers, expressing sympathy toward troubles SMEs experience while entering foreign markets, said they will conduct “sales diplomacy” designed to help SME exporters expand exports.

KBIZ Holds 64th General Meeting

The Korea Federation of Small and Medium Business held the 64th General Meeting at KBIZ Building in Yeouido, Seoul, on Feb. 26.

The meeting had a briefing session on 2025 major policy outcomes and a wards ceremony of excellent SME cooperatives and merit service prize winners.

Among the excellent SME cooperatives selected by KBIZ are Korea Federation of Printing Cooperatives, the Gyeonggi-do Concrete Industry Cooperative and Jeollanam-do Remicon Industry Cooperative.

In his speech at the meeting, KBIZ Chmn. Kim said, “Korea has seen her national standing rising as Kospi topped 6,000 and exports surpassed $700 billion to rank fifth in the world, but these achievements centered around some large-sized companies, with SMEs still grappling with difficulties.”

Chmn. Kim called for ushering in an era of SMEs’ renaissance with A “self-reliance and perseverance” attitude by ramping up shared growth in the financial and distribution sectors and cooperatives’ support of SMEs and concentrating on SME’s global market entry and growth in provincial areas.