Incentive Strategies to Promote Business Continuity Plans (BCP) for SMEs in Korea: A Comparative Analysis with Japan’s Business Continuity Enhancement (BCE) Certification System

Incentive Strategies to Promote Business Continuity Plans (BCP) for SMEs in Korea: A Comparative Analysis with Japan’s Business Continuity Enhancement (BCE) Certification System

This study compares and analyzes incentive strategies for promoting Business Continuity Plans (BCP) and related certification systems in Korea and Japan, with a focus on deriving effective incentive strategies for Korean companies, particularly small and medium-sized enterprises (SMEs). Through a literature review, the study examines Japan’s Business Continuity Enhancement (BCE) certification system in comparison with Korea’s current BCP status to identify actionable incentive measures. In response to the Great East Japan Earthquake, Japan introduced the BCE certification to encourage voluntary BCP adoption among SMEs, providing financial incentives such as low-interest loans, tax benefits, and subsidies. In contrast, Korea’s disaster reduction excellence certification system provides relatively limited incentives, resulting in low SMEs’ participation rates. The study emphasizes the need for Korea to benchmark Japan’s BCE certification by introducing practical incentive strategies, including expanded financial support through low-interest loans, insurance discounts, and tax benefits, as well as tailored education and consulting services for SMEs. Simplifying the certification process is also recommended to facilitate broader SME participation. Limitations of this study include restricted data and time scope, which may affect the generalizability of the findings. Additionally, a quantitative analysis of the impact of proposed incentives on companies’ disaster response capabilities was not conducted. Future research should address these limitations by developing industry-specific incentives that can enhance Korea’s disaster resilience and foster sustainable corporate growth.

This study compares and analyzes incentive strategies for promoting Business Continuity Plans (BCP) and related certification systems in Korea and Japan, with a focus on deriving effective incentive strategies for Korean companies, particularly small and medium-sized enterprises (SMEs). Through a literature review, the study examines Japan’s Business Continuity Enhancement (BCE) certification system in comparison with Korea’s current BCP status to identify actionable incentive measures. In response to the Great East Japan Earthquake, Japan introduced the BCE certification to encourage voluntary BCP adoption among SMEs, providing financial incentives such as low-interest loans, tax benefits, and subsidies. In contrast, Korea’s disaster reduction excellence certification system provides relatively limited incentives, resulting in low SMEs’ participation rates. The study emphasizes the need for Korea to benchmark Japan’s BCE certification by introducing practical incentive strategies, including expanded financial support through low-interest loans, insurance discounts, and tax benefits, as well as tailored education and consulting services for SMEs. Simplifying the certification process is also recommended to facilitate broader SME participation. Limitations of this study include restricted data and time scope, which may affect the generalizability of the findings. Additionally, a quantitative analysis of the impact of proposed incentives on companies’ disaster response capabilities was not conducted. Future research should address these limitations by developing industry-specific incentives that can enhance Korea’s disaster resilience and foster sustainable corporate growth.