Icheon-si Increases Corporate Support Budget by 23% Despite Fiscal Tightening

Mayor Kim Kyung-hee "Strengthening Customized On-site Support for Businesses"
Comprehensive Support Policy for Funding, Production, Market Access, and Business Environment

Gyeonggi-do Icheon City will increase its corporate support budget by 23% this year compared to last year despite overall fiscal tightening.

According to Icheon City on the 25th, the city will provide a total of 4,189.13 million KRW for corporate support projects throughout this year. This amount is 23% higher than the 3,396.21 million KRW provided last year.

Kim Kyung-hee, Mayor of Icheon. [Photo by Icheon City]

Despite fiscal tightening due to decreased tax revenue, Icheon City's increase in the related budget is interpreted as following Mayor Kim Kyung-hee's administrative direction that job creation is essential for urban growth. Regarding this, Mayor Kim presented this year's vision as "operating a demand-centered customized system that directly visits corporate hardship sites" and "improving corporate activity conditions that can be felt."

To this end, the city plans to invest the budget by setting five key policy areas: ▲financial support ▲customized corporate hardship support ▲technology innovation and product production support ▲domestic and overseas market development support ▲business environment creation.

First, through the "Special Management Fund" project, the city supports loans at a 2% interest rate for small and medium-sized manufacturing companies recommended by the city, while contributing to Gyeonggi-do for the Small and Medium Business Development Fund to support operating and facility funds for local SMEs. For local SMEs lacking collateral, loan guarantee support is provided, and through entrustment to public institutions such as the Gyeonggi-do Economic Science Promotion Agency and Gyeonggi Technopark, assistance is offered for design development, overseas exhibitions, export logistics costs, star company development, customized growth, and smart factory dissemination.

Through the "Small-scale Corporate Environment Improvement Project," the city supports improvements in infrastructure around factories, labor environment, work environment, and fire facilities. In particular, it plans to alleviate corporate burdens by supporting up to 80% of rental costs for dormitories for SME workers. In addition, the city will carry out various support activities such as participation in domestic exhibitions and startup incubation centers.

Meanwhile, Icheon City supported 629 companies with 3,396.21 million KRW over the past year. Mayor Kim said, "We will create an Icheon City where companies and citizens are happy by creating a business-friendly environment."