Chungbuk Provides 'Emergency Support' to Companies Affected by Heavy Rainfall

[Asia Economy (Chungbuk) Reporter Jeong Il-woong] Chungbuk Province announced on the 10th that it will urgently provide 5 billion KRW in special management stabilization funds to small and medium-sized enterprises (SMEs) affected by the heavy rain.

The special management stabilization funds are provided as operating funds necessary for companies' production and sales activities. Eligible recipients are SMEs that suffered damage due to contract cancellations, losses of business sites, facilities, products, delivery delays, or business suspensions caused by the heavy rain (with business site addresses in Chungbuk as of the application date).

Support is available up to 300 million KRW per company, and companies receiving support will be subject to a fixed annual interest rate of 2%, which is lower than the market rate, with a lump-sum repayment over two years.

Applications can be submitted through the Chungbuk Business Promotion Agency from today until July 4. SMEs wishing to receive the special management stabilization funds must report the damage to their respective city, county, or town/district offices, obtain a disaster confirmation certificate, and submit it to the Chungbuk Business Promotion Agency.

So far, 47 cases of heavy rain damage have been reported and received in various cities and counties of Chungbuk, including Chungju (8 cases), Jecheon (4 cases), Boeun (1 case), Okcheon (8 cases), Jincheon (7 cases), Goesan (2 cases), and Eumseong (13 cases), with restoration work underway due to factory flooding and other damages.

The province plans to take measures to ensure that funds are promptly provided after eligibility screening upon application receipt. In addition to this support, plans to expand the scale of support funds are also being considered.

Kang Seong-hwan, head of the Economic and Enterprise Division of the province, said, “In a situation where the economy is sluggish due to COVID-19 and heavy rain damage adds to the difficulties, the hardships of local SMEs are increasing. The province will continue to closely monitor SME damage situations and cooperate with related organizations to promote damage recovery support and customized enterprise support policies.”