New Introduction of
Win-Win Growth Network Loan for SME Production Fund Financing
The Small and Medium Business Corporation (Chairman Kang Seok-jin) announced on the 1st that the scale of the 2024 Small and Medium Business Startup and Promotion Fund (Jungjin Fund) was finalized at 11.1389 trillion won following the resolution of the National Assembly plenary session on December 21.
This represents an 8.8% increase compared to the 2023 Jungjin Fund main budget of 10.2398 trillion won. The Small and Medium Business Corporation focused on strengthening its role to respond to the prolonged complex crisis and to enable small and medium enterprises (SMEs) to become a key pillar of private-led economic growth.
First, to overcome the triple high (high inflation, high interest rates, and high exchange rates) complex economic crisis, in addition to the existing policy funds loan method of 4.4639 trillion won, this year, 930.7 billion won worth of interest subsidy support will be provided to alleviate the interest burden on SMEs through the inflow of private finance.
Additionally, a producer finance loan method was introduced, newly allocating 100 billion won for the Win-Win Growth Network Loan, where SMEs cooperating with large or medium-sized enterprises can receive production funds loans from the Small and Medium Business Corporation based on delivery orders and the purchasing company repays the loan after delivery completion.
Efforts will also be made to expand export infrastructure to support the growth and competitiveness of export-oriented SMEs. The export voucher budget was increased by 10.2 billion won to 111.9 billion won compared to the previous year. The budget for operating overseas bases to support promising export SMEs’ entry into emerging markets and export country diversification was expanded by 1.3 billion won to 33.3 billion won.
To alleviate manpower shortages in software startups, a new budget of 1.6 billion won was allocated for the overseas (Vietnam) developer supply and practical training employment matching support project. By supporting the training of about 200 IT personnel annually, this will help strengthen the capabilities of SMEs in the software and artificial intelligence sectors.
Also, as part of the government’s livelihood economy and vulnerable group support projects, a new budget of 300 billion won was allocated for 'Financial Support for Small Business Owners and Self-Employed.' This aims to reduce the interest burden by partially exempting loan interest for vulnerable small business borrowers.
Kang Seok-jin, Chairman of the Small and Medium Business Corporation, said, "This year, the Small and Medium Business Corporation will establish a response system to prepare for the prolonged complex crisis and fulfill its role as the frontline policy execution agency for SMEs by strengthening support for private-led innovative growth."
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