Jinju City to Provide 25 Billion KRW in Support Funds for SMEs in the Second Half of the Year

Following the 50 Billion Won Support in the First Half, Support for Business Recovery of Local Companies

Jinju City Hall Exterior View

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Jinju City, Gyeongnam Province announced on the 16th that it will support 25 billion KRW worth of small and medium-sized enterprise (SME) development funds in the second half of the year to stabilize management and ease financial burdens for local SMEs struggling due to the novel coronavirus infection (COVID-19).

The SME development fund support compensates part of the bank loan interest for local SMEs to stabilize management and revitalize the economy, which have been contracted due to COVID-19 and other factors.

In particular, this year, the city is expanding the interest difference compensation rate from 1.5% to 2% for general funds (3% for preferential funds) compared to the previous year.

The support targets are small and medium manufacturing enterprises with headquarters and business sites in the city, registered factories, and a manufacturing ratio of 30% or more, as well as handicraft producers. The loan limit is up to 700 million KRW per company annually based on sales, with a repayment period of 4 years. Companies with an annual sales decrease of 10% or more due to COVID-19 can receive up to 1 billion KRW.

The SME development fund support is not a direct loan from the city but a bank consortium loan. Companies wishing to receive financing should first consult with one of nine banks (branches located in Jinju City), including BNK Gyeongnam, IBK Industrial Bank, KB Kookmin, and NH Nonghyup, to check loan eligibility before applying to the city.

Applications can be submitted by mail or visit to the Corporate Trade Division of City Hall starting from the 19th.

A city official said, “We are expanding the interest difference compensation rate to support the recovery of local companies struggling due to the prolonged COVID-19 situation, so we hope many apply and receive assistance.”