Daejeon City Provides SME Loan Support Worth 385 Billion KRW

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Daejeon city government will provide loan support for small and medium-sized enterprise (SME) development funds totaling 385 billion KRW this year.

According to the city on the 19th, the loan support consists of ▲‘Management Stabilization Fund (300 billion KRW)’ for supporting labor costs and management expenses ▲‘Startup and Competitiveness Enhancement Project Fund (50 billion KRW)’ for land acquisition and facility investment support ▲‘Purchase-Conditioned Production Support Fund (30 billion KRW)’ for purchasing parts and raw materials for product manufacturing ▲and special guarantees for small enterprises (5 billion KRW).

The Management Stabilization Fund and the Startup and Competitiveness Enhancement Project Fund are funds that compensate a portion of the interest incurred when borrowing from banks, with the city supporting an interest difference of 2-3% of the loan amount.

The Purchase-Conditioned Production Support Fund provides low-interest loans at around 3% for up to 75% of the required funds (maximum 500 million KRW) when contracts for domestic and international supply are made. The special guarantee for small enterprises targets small businesses with five or more regular employees (ten or more for mining, transportation, and construction industries), offering guarantee support up to 100 million KRW, 2% interest compensation on the loan amount, and full coverage of the guarantee fee (1.1%) for two years.

Interest difference compensation is available when loans are obtained from banks that have agreements with the city.

Applications for funds are accepted year-round on the Daejeon Biz SME support portal site of the Daejeon Job and Economy Promotion Agency until funds are exhausted.

For more detailed information about fund support, please refer to the announcement on the city’s official website or contact the Daejeon Job and Economy Promotion Agency or Daejeon Biz.

Han Seon-hee, head of the city’s Strategic Business Promotion Office, said, “We hope that the SME development fund support will provide practical help to small and medium-sized enterprises struggling with high inflation, high interest rates, and high exchange rates.”