Gyeonggi Province will urgently inject 100 billion KRW to small and medium-sized enterprises (SMEs) and small business owners in the province affected by TMON and WEMAKEPRICE.
On the 4th, Gyeonggi Province announced that it has allocated a total of 100 billion KRW in 'e-commerce Damage Support Special Management Funds,' including 20 billion KRW from the SME support fund and 80 billion KRW from the small business support fund within the Gyeonggi Province SME Development Fund, to support SMEs and small business owners affected by TMON and WEMAKEPRICE.
The special management funds for e-commerce damage companies are in response to concerns over a chain bankruptcy of local companies due to the suspension of settlements. The support targets are SMEs and small business owners who suffered damage from the delayed settlements of TMON and WEMAKEPRICE.
This funding support provides up to 500 million KRW for SMEs and 100 million KRW for small business owners. The loan period is 3 years for SMEs (1 year grace period, 2 years equal installment repayment) and 5 years for small business owners (1 year grace period, 4 years equal installment repayment).
The loan interest rate is lowered by 2.0 percentage points for SMEs and 2.5 percentage points for small business owners compared to the bank's loan interest rate, thanks to Gyeonggi Province's secondary interest subsidy support. In particular, Gyeonggi Province expanded the support scope up to the loan limit to provide a practical solution to the management crisis.
Additionally, the evaluation criteria have been relaxed from 60 points to 50 points compared to existing working capital, and the limit assessment has been eased from one-third to one-half of the current sales.
Small business owners can receive support within the evaluation limit even if they are currently repaying existing Gyeonggi Province small business support funds.
The implementation timing and detailed contents of this funding will be announced separately in August.
Applicants wishing to apply for the funds can do so online through the 26 branches and 4 branch offices of the Gyeonggi Credit Guarantee Foundation (representative number 1577-5900) and the G-Money system (for small business owners, the Gyeonggi Credit Guarantee Foundation Lee Ji-won app).
Heo Seung-beom, Director of the Gyeonggi Province Economic Office, said, "This situation has escalated from a funding crisis to a management crisis, putting companies at risk of closing, so we urgently decided to provide support," adding, "We hope this special fund implementation will help stabilize the management of affected companies and small business owners."
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