Gov`t To Expand Financial Support To 30,000 Small-Medium Companies For IT

The government decided to expand its financial help from 10,000 to 30,000 small and medium companies for information technology (IT) improvements, and to support 128.6 billion won by 2003. The government also decided to include the small and medium companies if they receive the preliminary consulting services for IT, or participate in the eBusiness Network, which is initiated by the large companies.

Ministry of Commerce, Industry, and Energy and the Small and Medium Business Association announced yesterday that they decided to correct the problems shown in the `business to support 10,000 small and medium companies for IT` and to enforce the complementary measures beginning August after hearing opinions of the field.

According to the complementary measures, the government will expand its financial support from 10,000 by the end of 2002 to 8,000 this year, 10,000 in 2002, and 12,000 in 2003.

The government will provide 50 percent of the necessary cost or the maximum1 million won for the consulting service fee which will be used for planning of IT and the evaluation of the company` level of information. The government will dispatch 600 information consultants, who belong to the Small and Medium Business Association, if the company wants the consulting services. Especially, if companies participate in eBusiness Network among companies, not in terms of networking between individual companies, the government will support the maximum 20 million won, equivalent to the construction of the existing ERP system, per company for education and the consulting business. Ministry of Commerce, Industry, and Energy plans to evaluate the progress of the small and medium companies which receive the government financial support in each quarter. The Commerce Ministry also plans not to allow the participation of the IT companies, which have had many failing cases while joining this business, in the next year`s business.

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