Changwon Special City to Provide 200 Billion KRW in Small Business Development Funds Next Year

Expansion Targeting Defense Companies and Defense Parts Manufacturers

Changwon City in Gyeongnam Province held a Small and Medium Enterprise (SME) Development Fund Loan Review Committee meeting on the 27th and confirmed the provision of 200 billion KRW in SME development funds for the next year.

Meeting scene of the Small and Medium Business Promotion Fund Loan Review Committee.

The SME development fund is a support policy for SMEs that need capital for business management and facility investment. In 2024, a total of 200 billion KRW has been allocated, with 160 billion KRW for business stabilization funds (80 billion KRW in the first half and 80 billion KRW in the second half) and 40 billion KRW for facility funds.

Applications for development funds will be accepted from January 2, 2024, through nine commercial banks that have signed business agreements with the city.

The partner financial institutions will support part of the interest incurred on new loans, providing an interest subsidy of 2.5% points under the condition of a two-year grace period with lump-sum repayment.

The support targets are SMEs headquartered and operating in Changwon City, including registered manufacturing factories, shipbuilding and aerospace cooperative manufacturers, software industry companies, and suppliers related to the nuclear power industry.

The loan limit per company is up to 300 million KRW for business stabilization funds (400 million KRW for special enterprises) and 500 million KRW for facility funds (700 million KRW for special enterprises), within 50% of the sales revenue shown on the financial statements. The total loan limit per company is 500 million KRW (700 million KRW for special enterprises).

Additionally, in 2024, due to an increase in defense export orders, the need for economic support to expand exports of defense system companies and small and medium cooperative suppliers has increased, leading to expanded support for defense companies and defense parts production (supply) companies.

Jang Geum-yong, the First Deputy Mayor, stated, “With the continuation of the high-interest rate trend, difficulties for SMEs are expected to persist next year. Changwon City will implement the most needed financial support for companies to secure the competitiveness of local industries and assist in crisis management, and we will continue to provide unwavering support.”