Entrepreneurs must apply directly to access government funding and tax benefits

Young entrepreneurs and those in the early stages of business can receive up to 100 million won through the Early-Stage Startup Package, but must apply directly to access these funds and tax benefits.

Young entrepreneurs preparing for or in the early stages of starting a business need to actively utilize various support systems provided by the government and local governments. While support measures are prepared in stages—from securing startup funds to tax management—the key point is that most benefits can only be received if the individual applies directly.

Funding Support for Pre-Startup and Early-Stage Entrepreneurs... Up to 100 Million Won

Funding support programs vary depending on the stage of the startup. According to information provided by the National Tax Service, pre-entrepreneurs who have not yet registered their business can receive support through the 'Pre-Startup Package.' For early-stage companies that have been in business for less than three years after business registration, it is possible to receive support of up to 100 million won through the 'Early-Stage Startup Package.'

Methods for raising funds extend beyond subsidies. By utilizing youth-only startup funds operated by the government or youth startup support funds provided by various local governments, the burden of initial capital can be reduced. These measures aim to alleviate the financial difficulties experienced during the early stages of a startup.

Tax Support and Deferral Systems for Novice Business Owners

Support systems from the National Tax Service are also available for novice business owners who find tax management difficult. Through the 'Startup Tax Support Service,' individuals can receive help from tax experts and manage tax risks that may arise as the scale of the business grows. According to the explanation by a tax expert in the video, this service functions as tax tutoring for novice business owners.

If securing initial liquidity is difficult, one can utilize systems that extend tax payment deadlines or defer tax collection. Additionally, measures such as tax credit benefits provided when hiring new employees, or systems to select or defer tax audit periods, are mechanisms designed to help owners focus on business operations. These items can be reviewed by not only young entrepreneurs but also those preparing for startups and early-stage business owners according to their circumstances.

"Not Automatically Applied"... Document Management and Precautions When Applying

While various support systems exist, the most important point to note is that these benefits are not automatically applied. The video emphasized that "these youth programs and various other systems are not applied automatically," highlighting that support cannot be received by sitting still and must be applied for directly at the appropriate time. In particular, since tax reductions or credit benefits are usually applied for during filing, it is important to be sufficiently informed about relevant information in advance.

If subsidies are received, thorough follow-up management is also required. If a subsidy is received from the government or an institution, valid expense verification documents must be submitted to the relevant institution every time an expenditure is made. If the submitted evidence is found to be false, or if expenses are found to be inaccurate or used for purposes unrelated to the business, the subsidy may be reclaimed, and the opportunity to apply for future projects may be revoked. Therefore, the process of collecting appropriate documents is essential.

Experts recommend securing information by utilizing the Startup Tax Support Service, advice from nearby professionals, or well-established AI tools. Checking in advance what support can be received, proceeding with business registration carefully, and preparing to collect appropriate documents can be important factors that determine the success or failure of a business, just as much as starting the business itself.

Source: original video (YouTube)