Chungnam Invests '1 Trillion Won' to Support SMEs and Small Business Owners

Chungnam Province will invest 1 trillion won to support local small and medium-sized enterprises (SMEs) and small business owners.

On the 16th, the province announced that it will promote 28 support projects for SMEs and small business owners as the Chungnam Companion Composite Index cyclical fluctuation value has declined for seven consecutive months, indicating that the local economy has entered a downturn phase.

The projects will focus on financial support and market development assistance. First, the province will expand the scale of financial support for small business owners, where cities and counties compensate for interest rate differences, from 300 billion won to 500 billion won, and will additionally allocate 300 billion won each to vulnerable small business groups and neighborhood markets.

It will also invest 100 billion won in special business stabilization funds for crisis industries such as plastic manufacturing, which consumes a large amount of energy. This fund is expected to support up to 300 million won per company.

Additionally, the province will ease cash flow by deferring repayment of existing loans worth 1.3 trillion won across approximately 44,000 cases until the end of the year and providing microloans of up to 15 million won per household to 300 small self-employed business owners.

Market development support will be carried out by expanding the public purchase target institutions for SME products to provincial-affiliated organizations, raising the purchase target amount from 3 trillion won to 3.5 trillion won.

Furthermore, overseas trade offices will be established in major export countries such as the United States, China, Japan, and Germany to assist local SMEs in developing overseas markets.

Along with this, a total of 10 billion won will be invested to support fuel and electricity cost increases for approximately 138,000 farming households, including those in facility horticulture, to help cope with the recent sharp rise in energy prices.

Kim Tae-heum, Governor of Chungnam Province, said, "Even in this severe economic situation, if we act with a spirit of 'Dongsimdongryeok'?unity of hearts and combined strength?we can overcome any crisis," adding, "The province will work together with residents to overcome the current crisis and revitalize the local economy."