Gangwon-do, Emergency Support for Small Businesses and SMEs with 'Interest-Free Loans, Payment Deferrals, and Consumption Promotion'

Interest-Free Loans for Small Business Owners
3-Month Deferral of City Gas Bills
Province Residents Join Together to Boost Consumption Boom

[Asia Economy Reporter La Young-cheol] Amid the recent nationwide surge in heating costs, Gangwon Province is taking emergency measures to alleviate the economic burden on local small business owners and small and medium-sized enterprises (SMEs).

On the 6th, Gangwon Governor Kim Jin-tae held a press conference at the provincial office and stated, "Due to high inflation and high interest rates, local small business owners and SMEs are facing crises such as closures caused by increased operating costs, making support urgently needed."

First, the province will provide interest-free loans up to 5 million KRW per business starting at the end of this month to approximately 9,660 small business operators within the province.

For short-term funds with principal repayment after six months, businesses will receive full support for interest (5.6%) and guarantee fees (0.8%), benefiting about 180,000 KRW per business (140,000 KRW interest, 40,000 KRW guarantee fee).

Loans can be obtained at NongHyup Bank, Shinhan Bank (in-person), and Kookmin Bank (both non-face-to-face and in-person) after receiving a guarantee certificate from the Gangwon Credit Guarantee Foundation (7 branches).

Additionally, for the first time nationwide, the province will grant a three-month payment deferral benefit on city gas bills to small business owners and SMEs.

Small business owners and SMEs with city gas bills under 300,000 KRW in January of this year (billed in February) can apply once to the city gas company for a payment deferral and postpone full payment for three months. Therefore, the February bill can be paid in May, the March bill in June, and the April bill in July.

However, small business owners and SMEs with city gas bills exceeding 300,000 KRW are excluded from the payment deferral support, considering priority support for low-income businesses and the cash flow of city gas companies.

For Cheorwon, Hwacheon, Yanggu, and Inje counties, where city gas supply is unavailable and billing and supply systems vary by region, interest-free loan support will be provided as an alternative. The province plans to sign a win-win agreement with five city gas companies in the province under these conditions on the 9th.

The province will also promote a "Together with Residents Consumption Boom-up" campaign to expand sales for small business owners. With cooperation from military authorities, the plan is to encourage local consumption by expanding outings and leaves for approximately 150,000 military personnel during the one-month period in March after the "cold weather training" ends.

The province will add dining, lodging, and PC rooms to the 812 military preferential stores and offer a 30% discount benefit. This is in addition to the existing 20% refund from the "Love for the Country Pay," providing an extra 10% discount.

Seventeen universities in the province (about 80,000 students) will jointly hold a "New Semester Consumption Promotion Campaign" with nearby merchant associations throughout March, offering discounts and events.

From the 13th to the end of March, the province, along with each city and county, public institutions, investment and foundation institutions, financial institutions, and economic organizations will participate in activities such as purchasing goods using welfare points and holding "Dining Out Days" eight times a month to boost local shopping districts.

Choi Ki-yong, Director of the Gangwon Province Economic Bureau, said, "We will do our best to urgently support small business owners and SMEs facing difficulties and reduce their management burdens through interest-free loans, payment deferrals, and consumption promotion campaigns."