Chungnam Province Provides 685 Billion KRW in Loans to Support Small and Medium Enterprises

685 Billion KRW Support for SME Development Funds This Year
Stabilizing Management and Promoting Growth of Local Small Businesses and SMEs

Chungnam Province announced on the 18th that it will raise and support 685 billion KRW this year as funds for fostering small and medium-sized enterprises (SMEs).

The support amounts by category are ▲Startup funds 40 billion KRW ▲Competitiveness enhancement funds 40 billion KRW ▲Innovation-type funds 105 billion KRW ▲Corporate rehabilitation funds 5 billion KRW ▲Special management stabilization funds 10 billion KRW ▲Technology innovation-type management stabilization funds 70 billion KRW ▲Social economy funds 1.5 billion KRW ▲Venture and promising startup funds 8.5 billion KRW ▲Small business funds 400 billion KRW, divided into 193 billion KRW for enterprise fostering funds and 492 billion KRW for management stabilization funds.

In particular, this year Chungnam Province plans to allocate 300 billion KRW in guarantee-linked small business funds and 100 billion KRW in non-guarantee funds to support the management stabilization and growth promotion of small businesses and SMEs suffering from the double burden of high interest rates and high inflation.

For the guarantee-linked small business funds, when loans are taken out with a guarantee certificate issued through the Chungnam Credit Guarantee Foundation, Chungnam Province will compensate 2.5% of the interest, and for the non-guarantee funds, the Chungnam Job and Economy Promotion Agency will recommend loans and compensate interest ranging from 1.75% to 2.0%.

This year, a special technology innovation-type management stabilization fund for Environmental, Social, and Governance (ESG) management stabilization funds will also be newly established with a scale of 10 billion KRW. Based on agreements with IBK Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Technology Finance Corporation, the ESG management stabilization fund will provide benefits such as loans up to 500 million KRW per company and a 1.2% guarantee fee support.

This fund was newly established to assist technology innovation-type companies such as venture companies lacking collateral in technology development and ESG management realization, providing 2% interest support for two years.

Enterprise fostering funds are prepared to activate startups and strengthen competitiveness of SMEs and venture companies that have technology and business potential but lack funds. The interest rates borne by companies are 4.0% for startup and competitiveness enhancement funds, 3.5% for innovation-type funds, and 2.0% for corporate rehabilitation funds.

Management stabilization funds support interest rates of 2.0% for rehabilitated companies, 2.0% for special management stabilization funds, 1.5% to 2.5% for technology innovation-type management stabilization funds, 2.0% for social economy funds, and 3.0% for venture promising startup funds.

Applications for seven funds including non-guarantee funds can be made non-face-to-face through the SME fostering fund support system of the Chungnam Job and Economy Promotion Agency.

Additionally, technology innovation-type management stabilization funds, venture promising startup funds, and social economy funds can be accessed through the Korea Credit Guarantee Fund and Korea Technology Finance Corporation, while guarantee-linked small business funds among small business funds must be directly submitted to the Chungnam Credit Guarantee Foundation.

These funds are loans obtained by issuing guarantee certificates and must be directly applied for at the guarantee institutions.

For more detailed information on support, please refer to the SME fostering fund support system or the Chungnam Province website.

A Chungnam Province official said, “We hope that through the support policies, local SMEs and small businesses experiencing management difficulties will find a way out.”