Banks strengthen succession support for small and medium-sized enterprises without successors

Owners of small and mediumsized enterprises that have operated for a long time in the Seoul metropolitan area are seeking succession plans due to the lack of successors. As their children do not take over the family business, these companies are considering thirdparty succession options such as mergers and acquisitions or employee buyouts. According to the Ministry of SMEs and Startups, the share of SMEs with managers aged 60 or older is around onethird, and it is estimated that a significant number of them have not yet designated a successor. As more children choose their own careers rather than carrying on their parents' businesses, the issue of business succession is becoming more prominent. In line with this trend, banks are setting up dedicated business succession teams and expanding services that combine legal, tax, and accounting advice. Woori Bank provides tailored consulting centered on its Business Succession Support Center, while other banks are also working with accounting firms, law firms, and guarantee institutions to support generational transitions, sales, and employee succession.