Yeosu City Accepts Applications for Secondary Interest Subsidy Support for Small and Medium Enterprises

Partial Support for Bank Loan Interest of Local Small and Medium Enterprises

Alleviating Financial Burden on SMEs During High-Interest Periods

Yeosu City, Jeollanam-do (Mayor Jeong Gi-myeong) announced on the 8th that it has started accepting applications for the ‘2024 Small and Medium Enterprise (SME) Interest Subsidy Support Project.’

The interest subsidy project is designed to alleviate the financial burden on SMEs in Yeosu City using commercial banks during periods of high interest rates by subsidizing part of the bank loan interest for these SMEs.

[Photo by Yeosu City]

The eligible applicants are SMEs as defined under Article 2 of the ‘Framework Act on Small and Medium Enterprises,’ whose main office (headquarters) and business sites are all located in Yeosu City, including registered manufacturing companies (unregistered manufacturers are eligible only if the building management ledger designates the use as factory and manufacturing facility), manufacturing-related service companies, knowledge service industry companies, and other enterprises meeting certain criteria.

However, companies that are temporarily closed, permanently closed, or have overdue taxes and are restricted from receiving SME policy fund loans are excluded from support.

Yeosu City plans to provide interest subsidies on bank loans totaling 80 billion KRW, supplying funds up to 200 million KRW per company annually under a two-year grace period with lump-sum repayment conditions.

The interest subsidy rate is 2.5 percentage points for preferential support targets such as women-owned businesses, disabled-owned businesses, job-creating companies, social enterprises, strong SMEs, star companies, award-winning Proud Yeosu Entrepreneurs, and ESG (Environmental, Social, and Governance) excellent companies, while other companies receive 2 percentage points.

This year, award-winning Proud Yeosu Entrepreneurs and ESG excellent companies have been newly added to the preferential support targets compared to the previous year.

Additionally, until last year, companies that received the same policy funds from other institutions amounting to 500 million KRW or more were not eligible for duplicate support; however, starting this year, duplicate support is allowed only for companies with a sales growth rate of 50% or more, export growth rate of 20% or more, or employment growth rate of 20% or more.

Yeosu City has signed agreements with a total of eight banks to promote the interest subsidy project, and individual companies can apply after consulting with the contracted banks.

Detailed information about the SME policy fund interest subsidy can be found on the Yeosu City website under Open Administration - Public Notices.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr