Extension of Employment Retention Cost Loan Program for SMEs by 6 Months Until Year-End

Loan Limit of 1 Million to 500 Million KRW per Company... Annual Interest Rate of 1.0%

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Employment and Labor and the Korea Workers' Compensation and Welfare Service announced on the 19th that the 'Employment Retention Cost Loan Project' for small and medium-sized enterprises will be extended until the end of December. The project, which was scheduled to end at the end of June, has been extended by six months. This measure was taken due to the increase in the project budget through the supplementary budget.

The Employment Retention Cost Loan Project targets small and medium-sized enterprises struggling to pay leave or furlough allowances to employees despite implementing leave or furlough measures due to management difficulties caused by the COVID-19 pandemic. Companies can use the loaned funds to pay leave or furlough allowances, receive employment retention support funds from the Ministry of Employment and Labor, and then repay the loan. Support is available at an annual interest rate of 1.0%, with a limit of 1 million to 500 million KRW per company per loan installment.

Business owners wishing to apply can do so by visiting the Korea Workers' Compensation and Welfare Service branch office with jurisdiction over the workplace location or by accessing the Workers' Welfare Service website.