Busan City, Small and Medium Enterprises and Small Business Policy Fund Support 'Smooth Sailing'

Reflecting Rapidly Changing Economic Trends... Expansion of Policy Fund Scale and Support Details for SMEs and Small Business Owners

Continued Tailored Support Next Year for Business Stability and Regional Economic Recovery of SMEs and Small Busine

Busan City is steadily providing policy funds to alleviate financial difficulties and revitalize management for small and medium-sized enterprises (SMEs) and small business owners.

Busan City Hall.

This year’s city policy funds, totaling 1.8 trillion KRW, have supported approximately 36,000 companies with 1.36 trillion KRW in funds for SME development, operating funds, and special funds for small business owners as of September, and plans to continue stable fund supply through the end of the year.

Since significantly expanding the scale of financial support in response to the COVID-19 crisis, the city has continuously increased the size and scope of policy funds to ease the burden on companies caused by worsening economic conditions such as high interest rates and high exchange rates.

The supply scale, which was around 1.34 trillion KRW in 2021, has steadily increased to approximately 1.8 trillion KRW this year, an expansion of more than 30%.

In particular, in response to the rapidly growing demand for policy funds from SMEs, the supply of operating funds was greatly expanded from 300 billion KRW to 500 billion KRW, and the interest subsidy rate was raised from the existing 1.5% to 2.0%.

Through maturity extensions for operating funds maturing in 2023 (for maturities from January to June and July to December 2023), the city aimed to stabilize SME management and mitigate shocks to the regional economy.

The interest subsidy rate for special funds for small business owners was increased from 0.8% to 1.5% starting in 2023, and through additional business agreements with major banks, interest support of up to 2.5% is being provided on 240 billion KRW worth of funds for small business owners.

Additionally, through the ‘Busan City SME Crisis Response and Regional Win-Win Promotion Financial Support Business Agreement’ signed in July this year with Busan Bank and the Korea Credit Guarantee Fund, new fund guarantees totaling 180 billion KRW are being supplied to promising startup companies and regional representative industry companies in Busan.

Since uncertain domestic and international economic conditions are expected next year as well, the city plans to continue tailored support along with continuous monitoring of economic trends to stabilize management for SMEs and small business owners vulnerable to external variables such as inflation and interest rates, and to aid regional economic recovery.

Mayor Park Hyung-jun stated, “Our city is doing its best to provide policy funds promptly to SMEs and small business owners, the backbone of the regional economy, to ease their difficulties,” and added, “We will continue to provide unwavering support so that no SMEs or small business owners suffer from financial difficulties caused by deteriorating financial conditions.”