Gimhae City Significantly Increases Financial Support Loans for Social Economy Enterprises

Initially Raised from 100 Million to 200 Million Won per Company

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Sharon] Gimhae City, Gyeongnam Province announced on the 5th that it will raise the loan limit per company from 100 million KRW to 200 million KRW for the Social Economy Enterprise Financial Support Project starting August 10th to help companies struggling due to the novel coronavirus infection (COVID-19).

The 'Gimhae City Social Economy Enterprise Financial Support Project' is a program that subsidizes loan interest for social economy enterprises to revitalize the social economy. It has been implemented since January this year through a mutual agreement signed last August between the city, the Korea Credit Guarantee Fund, and Gyeongnam Bank.

However, recently, due to the spread of COVID-19 and resulting management difficulties, companies needing additional loans have been suffering double hardships by using high-interest loans from commercial banks.

To alleviate these difficulties faced by social economy enterprises, the loan limit per company will be raised from 100 million KRW to 200 million KRW.

The support details remain the same as the existing agreement, including a 100% guarantee ratio by the Korea Credit Guarantee Fund, a 0.3% guarantee fee and a 0.5% preferential interest rate from Gyeongnam Bank, and a 2.5% interest difference subsidy from our city.

A city official stated, “In these difficult times due to COVID-19, we have decided to raise the loan limit to support our social economy enterprises. We hope this will provide practical help in overcoming COVID-19 and further activate the city’s social economy.”

For application inquiries, contact the Gimhae City Job Policy Division or the Korea Credit Guarantee Fund Busan·Gyeongnam Sales Headquarters.