Ministry of SMEs and Startups to Provide 85 Trillion Won in Chuseok Funds for Small Businesses and Small Merchants

At the Small and Medium Enterprise Financial Support Committee held on the 21st at Sinyeong Market in Yangcheon-gu, Seoul, Park Young-sun, Minister of SMEs and Startups, along with heads of policy financial institutions and commercial banks, met to hold the Small and Medium Enterprise Financial Support Committee and took a commemorative photo. Photo by Ministry of SMEs and Startups

Photo 3) Attendees listening attentively to the briefing by the merchants' association president

Photo 4) Group photo of attendees at the Small and Medium Enterprise Financial Support Committee

[Asia Economy Reporter Moon Hyewon] On the 21st, the Ministry of SMEs and Startups announced that it will provide Chuseok support funds worth 85.6 trillion KRW to small and medium enterprises (SMEs) and small business owners through loans and guarantees via banks and public institutions.

On the 21st, Park Young-sun, Minister of SMEs and Startups, held a Small Business Financial Support Committee meeting at Sinyeong Market in Yangcheon-gu, Seoul, and met with heads of policy financial institutions and commercial banks to request cooperation for the smooth execution of Chuseok support funds for SMEs and small business owners.

Minister Park said, “Since the demand for funds from SMEs is high during the holidays and difficulties are significant, please make efforts to ensure that the planned 85.6 trillion KRW special Chuseok funds for SMEs and small business owners are smoothly supported.”

She also stated, “To support SMEs affected by COVID-19, 2.7 trillion KRW will be provided through the 4th supplementary budget, and for small business owners, the system will be improved to increase the utilization of remaining funds from existing measures,” adding, “Financial institutions should make every effort to ensure that funds are supplied promptly.”

At this meeting, the Ministry of SMEs and Startups discussed the Chuseok fund support plan for SMEs and small business owners, requests for cooperation from policy financial institutions and banks, and plans to promote the Smart Pilot Shopping Mall project.

First, in preparation for Chuseok, 30.3 trillion KRW in new special funds will be provided to support holiday expenses for SMEs and small business owners with interest rate discounts of up to 1.5%, and a total of 33.47 trillion KRW will be supported, including 3.17 trillion KRW in guarantees from Shinbo, Kibo, and regional credit guarantee funds.

For existing loans and guarantees, a total of 52.13 trillion KRW will be extended in maturity to alleviate financial difficulties before and after the holiday.

Institutions participating in the Financial Support Committee agreed to minimize financial inconvenience for SMEs and small business owners when providing Chuseok funds and actively participate in revitalizing traditional markets before the Chuseok holiday through purchasing Onnuri gift certificates worth 2.13 billion KRW, shopping events, and donating purchased goods to social welfare facilities.