Workers of Atex, a mask manufacturing company, are producing products at a factory located in Paju, Gyeonggi Province. (Photo by Small and Medium Business Corporation)
[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation announced on the 20th that it has provided 8.4 billion KRW in policy funds to domestic health mask manufacturers to overcome the damage caused by the novel coronavirus infection (COVID-19).
This policy fund support was prepared to increase the production volume of mask manufacturers and resolve difficulties in procuring mask raw materials. The Corporation supported policy funds to 14 domestic small and medium-sized health mask manufacturers, enabling the expansion of production lines and stable procurement of raw materials.
The daily mask production of companies supported by the Corporation's funds increased from 970,000 to 1.64 million units. This corresponds to about 15% of the total daily mask production in Korea, and the Corporation explained that the prompt policy fund support for small and medium enterprises is leading to stable mask supply.
The Corporation provided facility funds and pilot operation funds to Ecodream, a mask manufacturer located in Gwangsan-gu, Gwangju, to expand its production line. The company's existing facilities could not handle the sharply increased mask orders due to COVID-19. Through the fund support, two production lines were expanded. The daily mask production also increased from 50,000 to 100,000 units.
Ecodream's sales last year were around 1.3 billion KRW. Based on this year's support from the Corporation, the company has set a goal to achieve sales of 16 billion KRW. Along with the expansion of manufacturing facilities, they plan to hire 20 additional production workers.
The Corporation also provided emergency management stabilization funds necessary for securing mask raw materials to Atex, located in Paju, Gyeonggi-do. Atex faced difficulties in securing funds for purchasing raw materials and production costs due to the surge in mask production caused by COVID-19.
With prompt fund support enabling procurement of raw materials when needed, the daily mask production increased from 170,000 to 400,000 units. Atex's sales this year are expected to reach 30 billion KRW, a 30% increase from the previous year.
Cho Jeong-kwon, Acting President of the Corporation, said, "We are supporting not only mask manufacturers but also small and medium enterprises affected by COVID-19 in various ways, from funding to exports," adding, "We will continue to promptly identify field difficulties and spare no support to minimize the damage to companies."
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