Gyeonggi-do Provides Up to 500 Million KRW at 1% Annual Interest for Food Hygiene Businesses

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will provide low-interest loans at an annual rate of 1% up to a maximum of 500 million KRW to food hygiene businesses in the province experiencing management difficulties.

On the 23rd, Gyeonggi Province announced that it will carry out the "2023 Food Hygiene Business Loan Project," which offers loans at a low interest rate of 1% per year up to 500 million KRW for facility improvements or operating funds to food hygiene businesses struggling due to the prolonged COVID-19 pandemic and high interest rates.

This project is funded by the provincial Food Promotion Fund and supports loans for costs related to ▲ modernization and replacement of production facilities in food manufacturing and processing businesses ▲ improvement of aging facilities in food service businesses ▲ operating funds for food service businesses.

Food manufacturing and processing businesses seeking facility improvements can receive support of up to 500 million KRW, and food service businesses up to 100 million KRW, at an annual interest rate of 1%, with a repayment plan of 2 years grace period followed by 3 years of equal installments.

Additionally, the province provides a temporary support of up to 20 million KRW in "COVID-19 Emergency Operating Funds" for owners of general restaurants, cafes, and bakeries, which can be used for fixed expenses such as labor costs, facility management, and rent, at the same ultra-low and fixed interest rates as the food hygiene business facility improvement loan project.

Kim Jang-hyun, Director of the Food Safety Division of the province, said, "I understand that food hygiene business owners are facing many difficulties due to the prolonged COVID-19 pandemic followed by rapid increases in prices and interest rates. We will carry out the loan project without any setbacks to provide ultra-low interest loans at 1% to help business owners facing operational crises and ultimately provide hygienic and safe food to the residents."

Last year, the province supported a total budget of 10 billion KRW for the food hygiene business loan project, benefiting 295 businesses.