Gyeonggi-do Provides Emergency 10 Billion KRW Support to Social Economy Enterprises Affected by COVID-19

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will inject 10 billion KRW in emergency funds into social economy enterprises struggling due to COVID-19.

The province announced on the 25th that it will expand the existing 'Special Loan for Social Economy Enterprises' product in cooperation with the Credit Union to support social economy enterprises in the province facing difficulties due to COVID-19.

This support product increased the existing loan limit from 150 million KRW unsecured and 200 million KRW secured to 300 million KRW for both unsecured and secured loans. Social economy enterprises that have already received loans can also apply for additional loans. The required documents have been greatly simplified to enable quick and convenient loan processing.

The interest rates are up to 3.0% per annum for unsecured loans and up to 2.5% per annum for secured loans. The loan period ranges from a minimum of 3 years to a maximum of 10 years. In particular, Gyeonggi Province will support interest up to 2%, so the actual interest burden for social economy enterprises is within 1% per annum.

Seo Nam-kwon, Director of the Communication and Cooperation Bureau of the province, stated, "We expect that the emergency loan support will practically help social economy enterprises, which have been struggling due to COVID-19, to recover early from damages and revitalize the local economy."