Incheon City Provides Emergency Loan Support to Tourism Industry Affected by COVID-19

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City has launched emergency financial support for the local tourism industry, which has been hit hard by the spread of the novel coronavirus infection (COVID-19).

The support targets tourism businesses operating small and medium-sized enterprises such as tourism accommodation, tourist facility operations, amusement facility operations, and tourism convenience facilities, specifically those affected directly or indirectly by COVID-19.

The loan amount for this small and medium enterprise development fund, supported through bank cooperative loans, is up to 700 million KRW per business, with repayment terms of either a lump sum at maturity (1 or 2 years) or a 6-month grace period followed by 5 installments over 3 years.

Incheon City will subsidize the interest difference at a rate of 2% on the loan amount. If the loan interest rate is 3%, the city covers 2%, so the business only bears 1% interest.

Applications for financial support can be submitted in person starting from the 27th at the Incheon Tourism Industry Support Center located on the 17th floor of Songdo Michuhol Tower within the Incheon Tourism Organization. Applicants must submit basic documents such as the application form, business registration certificate, financial statements, as well as a usage plan and damage confirmation.

Detailed information can be found on the Incheon City website and the business support information site BizOK (bizok.incheon.go.kr).

An official from Incheon City stated, "To assist the tourism industry struggling due to the spread of COVID-19, we have established a support system in cooperation with the Incheon Tourism Organization and Incheon Technopark, expanding the small and medium enterprise development fund support, which was previously focused on manufacturing, to the tourism sector."