'Policy Fund Interest Refund' for Job and Export Creating Companies

Alleviating Financial Cost Burdens for Small and Medium Enterprises

Source=Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation announced on the 9th that it is accepting applications for policy fund interest refunds for companies that have achieved job creation and export performance.

This policy fund interest refund was established to alleviate the financial burden on small and medium-sized enterprises and to support overcoming the COVID-19 crisis. The application period for the policy fund interest refund is until the 31st of this month.

The eligible applicants are companies that received policy funds between July 2018 and June 2019 and achieved job creation and export performance. The refund standard for job creation is 0.2 percentage points of the loan amount per new employee, and the refund standard for export performance ranges from 0.2 to 0.4 percentage points depending on export results. The refund limit is within the amount of interest paid in one year.

The job creation recognition criteria require hiring employees within three months after the loan and maintaining employment for one year. Export performance is applied by dividing it into export success or export improvement according to the results.

Since 2011, the Small and Medium Business Corporation has introduced and operated an interest refund system for performance-achieving companies to induce job creation and export performance among policy fund-supported companies. As of January this year, a total of 9,912 companies have received approximately 16.3 billion KRW in interest refunds.

Applications for the interest refund for performance-achieving companies can be made through the Small and Medium Business Corporation's website without separate supporting documents.

Kim Hakdo, Director of the Small and Medium Business Corporation, said, "We refund interest to companies that have created jobs and maintained employment despite difficult business conditions and to companies that have achieved export performance," adding, "In a situation where liquidity has decreased due to the prolonged COVID-19 pandemic, we hope that the interest refund will provide a small help in alleviating the financial burden on small and medium-sized enterprises."