Gyeonggi-do Supports 1% Interest... Up to 200 Million KRW per Company
[Asia Economy Reporter La Young-cheol] Gyeonggi Province has launched a fund injection totaling 10 billion KRW to support the business stability of companies within the province ahead of the Lunar New Year holiday.
On the 19th, the province announced that starting from the 20th, it will operate and support the "'2022 Lunar New Year Special Business Fund."
According to Article 2 of the "Framework Act on Small and Medium Enterprises," small and medium enterprises (SMEs) within the province can receive up to 200 million KRW per company with a 3-year maturity (1-year grace period and 2 years of equal installments) repayment condition, regardless of whether they have previously received working capital support.
The loan interest rate can be used at 1% lower than the bank rate through Gyeonggi Province's interest rate subsidy support. The operation period is from the 20th of this month until the 25th of next month. However, support may end early if the 10 billion KRW fund is exhausted.
SMEs in the province wishing to apply can do so online via the 25 branches of the Gyeonggi Credit Guarantee Foundation and the Gyeonggi Province SME Development Fund website.
This special business fund support aims to stabilize the management of companies affected by the resurgence of COVID-19 and to resolve temporary financial difficulties occurring before and after the Lunar New Year, thereby stabilizing jobs and revitalizing the local economy.
Especially this Lunar New Year, with the prolonged COVID-19 situation due to the spread of the Omicron variant and the Bank of Korea's base rate hike, it is expected that more companies will face financial shortages, making timely measures to resolve these difficulties urgent.
Meanwhile, the province is currently operating a total of 2 trillion KRW in SME development funds this year, and as of January this year, it has supported a total of 624 cases amounting to 75.8 billion KRW (30.9 billion KRW for working capital and 44.9 billion KRW for facility investment).
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