Korea Federation of Banks to offer tailored consulting for 300 small business owners

The Korea Federation of Banks will offer one-on-one business consulting to small business owners with annual sales of 100 million won ($74,300) or less.

The federation announced Tuesday it is launching the "Banking Sector Small Business Consulting Support Project," which will provide 300 small business owners with a total of 1,300 tailored consulting sessions.

The program focuses on supporting regional and youth entrepreneurs. At least 60 percent of participants will be drawn from areas outside Greater Seoul and major metropolitan cities, or from regions without bank consulting centers. The federation also plans to ensure at least 60 percent of participants are young entrepreneurs born in 1988 or later.

Consulting will begin with a diagnosis of each business's operating conditions, after which participants are matched with specialists in the relevant fields. The program covers five areas: management, brand and design, legal affairs, technology and digital transformation.

Consultants will analyze sales and cost structures to suggest adjustments to product mix and pricing, and will review workflow, staffing and equipment use to help improve operational efficiency. Support will also cover improving signage, logos and packaging design, refining online marketing strategies, and drafting promotional copy and product descriptions using AI. Legal consultations covering lease and business contracts, as well as trademark issues, will also be available.

Ten participating businesses identified as most urgently in need of operational improvements will receive additional support of around 6 million won ($4,460) per business. Following an on-site assessment, the program will help upgrade signage, interior environments and product displays, or introduce digital equipment, with follow-up inspections of installation and construction work.

All participants will receive a report containing their consulting results and business reference materials. Those who consent may also receive follow-up support coordinated with their primary bank.

The federation plans to use the consulting results to strengthen individual banks' small business support efforts, and will pursue consultant training sessions, a results showcase and a compilation of best practices. In the first half of this year, the federation provided 800 small business owners with 2,100 startup and business-closure consulting sessions.

"Since every small business has a different industry and operating environment, it is important to work together to find solutions tailored to each business," federation Chairman Cho Yong-byung said. "We hope this program will help small businesses run by regional and young entrepreneurs grow on a stable footing and breathe new vitality into local commercial districts as a whole."

Meanwhile, data from Korea Credit Data showed that average sales per small business in the second quarter of this year rose 4.53 percent from a year earlier, but average expenditures climbed at a faster pace of 5.83 percent. Over the same period, the average profit margin fell 0.92 percentage points to 25.2 percent, while overdue loans held by sole proprietors totaled 15.2 trillion won ($11.3 billion).