Seoul Economic Association uses AI to help small businesses grow and recover

The Seoul Economic Association announced Wednesday that it is running two AI-driven programs for small and medium-sized enterprises and small business owners in Seoul through a Seoul Metropolitan Government subsidy project: an AI-based online marketing capacity-building program and an AI-based business closure counseling and recovery support program.

The online marketing program targets 60 Seoul-area SMEs and small businesses struggling with marketing. Participating companies receive AI-powered analysis of their products and services, along with content creation and online distribution support — approximately 72 pieces of content per business over the program period. AI literacy training and one-on-one support from AI marketing specialists are also provided. About 40 businesses have applied and are currently taking part, with final selections to be confirmed after a written screening process.

The association is also running the AI-based closure counseling and recovery support program for businesses in financial distress. Data compiled by the Ministry of SMEs and Startups — drawing on National Tax Service closure statistics and a survey of 1,500 small business owners who had shut down — showed that 976,000 businesses closed last year. The closure rate in sectors dominated by small businesses, including manufacturing, wholesale, retail, food service, accommodation and other services, stood at 11.08 percent, above the overall average. The retail sector posted a closure rate of 15.4 percent, while food service came in at 15.1 percent.

Under the program, the association first uses an AI-based counseling system to assess each business's financial condition and difficulties, analyzing warning signs, risk levels and the need for additional support. Through AI consultations and self-assessments, the association plans to screen about 120 businesses and select 40 for in-depth one-on-one consulting with specialists in finance, debt restructuring, taxation, management and business re-establishment.

In addition to online support, the association is offering in-person counseling. Working with the Mapo Tax Office, it has been operating a walk-in closure and recovery consultation service at the office's public service center for three weeks starting Aug. 24. Sessions focus on the practical challenges business owners face when closing — including closure procedures, store demolition and restoration, debt adjustment, loan repayment burdens, tax and legal issues, restarting a business, switching industries and re-employment. Staff also provide guidance on programs run by related agencies such as the Korea Federation of Small and Medium Business and the Seoul Credit Guarantee Foundation. About 20 consultations have been held on-site so far.

"We must not view business closure as a personal failure, especially as the operating environment for the self-employed and small business owners grows increasingly difficult," Seoul Economic Association Chairman Lee Seok-woo said. "Society must come together to help create a path for people to start again."