[Asia Economy Reporter Park Hyesook] Incheon City is launching a policy fund loan worth 10 billion KRW to support small-scale manufacturers.
This is a new policy fund announced in September as part of the "Incheon-type Livelihood Economy Measures for Citizen Happiness," aimed at expanding financial support for the manufacturing sector, which is the foundation of the industrial economy. Through this project, more than 400 small business owners are expected to benefit.
The loan targets manufacturing companies (small business owners) in Incheon with fewer than 10 regular employees.
Loans of up to 30 million KRW per company will be supported with a 5-year maturity, with a 1-year grace period followed by monthly installment repayments over 4 years.
The city will provide interest subsidies of 1.5% per year for 3 years from a guarantee fund of 800 million KRW, and an additional 1% interest subsidy will be provided from the loan date until July next year.
The Incheon Credit Guarantee Foundation also plans to support loan guarantees of up to 30 million KRW per company.
Companies wishing to apply for the loan can make an online reservation and apply through the Incheon Credit Guarantee Foundation website starting from the 25th of next month, or visit the foundation’s branch offices.
An official from Incheon City stated, "This project was prepared to foster grassroots industries, which are the foundation of the local economy, as part of the livelihood economy measures. We will continue to develop and implement various measures to support the growth of local small business owners."
There are a total of 29,052 small business sites in Incheon, accounting for 9.5% of all manufacturing companies, but only 2,555 companies (5.3%) have received policy fund support this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
