Busan City to Provide Special Support for SMEs and Small Business Owners Affected by the Wemakeprice-TMON Incident

Emergency Policy Fund of 20 Billion Won to Prevent Chain Bankruptcies Due to Settlement Delays

Financial and Legal Support, Alternative Platform Entry and Sales Promotion for Small Businesses Facing Market Contraction

Busan City has established and is implementing special support measures for local small and medium-sized enterprises (SMEs) and small business owners affected by the 'Wemakeprice and TMON incident.'

This measure was prepared in anticipation that damage from the 'Wemakeprice and TMON incident' will continue to increase, aiming to proactively respond and minimize losses for Busan-based SMEs and small business owners while helping them return to normal business operations.

The government expects that when the settlement dates for Wemakeprice and TMON transactions for June and July arrive, the amount of damage will further increase. Accordingly, the city has been closely monitoring the situation of local damages since the onset of the Wemakeprice and TMON incident.

First, to prevent the worst-case scenario such as chain bankruptcies due to delayed settlements, a total of 20 billion KRW in policy funds will be urgently provided to affected SMEs and small business owners. This support is designed to complement government measures, offering more robust assistance to affected businesses, and features a simplified document review process to swiftly help restore business operations.

A new 'e-commerce damage company (Wemakeprice, TMON, etc.) special guarantee fund' of 10 billion KRW will be established. Policy funds of up to 100 million KRW per case (within the unsettled amount) will be provided, with a 100% guarantee ratio for up to five years (guarantee fee rate of 0.5%).

Additionally, 10 billion KRW will be allocated to the 'Regional Coexistence Moduron PLUS Policy Fund,' supporting SMEs and small business owners with mid- to low-credit ratings facing financial difficulties due to unsettled payments. Up to 80 million KRW per case will be provided, along with an interest subsidy of 1.0% for up to five years.

Applications can be submitted via the Busan Credit Guarantee Foundation's mobile app or website, and further details are available on the foundation's website or by contacting the customer center.

Applications for the Regional Coexistence Moduron PLUS Policy Fund are accepted at any time, while applications for the 'e-commerce damage company (Wemakeprice, TMON, etc.) special guarantee fund' can be submitted starting August 19.

Next, to stabilize the management of SMEs and small business owners facing closure or credit crises due to unsettled payments, financial and legal consulting will be proactively provided.

For companies in credit crisis or those experiencing guarantee accidents that require financial or legal consulting, tailored consultations will be offered on credit management, refinancing with low-interest funds, debt adjustment, and installment repayments. This aims to serve as an effective social safety net and help these companies wisely overcome their crisis situations.

In addition, for small business owners whose sales have been hit due to reduced sales channels from this incident, opportunities to join alternative platforms and boost sales will be provided to help recover revenue.

Through the 2024 'Open Market Entry and Activation Support Project,' 120 local companies affected by reduced sales channels from the Wemakeprice and TMON incident will be selected and supported for platform entry and sales activation starting in October.

Finally, to comprehensively and continuously monitor the damage situation and centralize counseling services, a counseling desk will be established at the 'Busan Small Business Comprehensive Support Center.' The center will actively connect financial support guidance, legal service consultations, and alternative online platform entry to help affected SMEs and small business owners quickly overcome the crisis.

Counseling will be available from the 9th, and for more details, please contact the Busan Small Business Support Center by phone or refer to their website.

Mayor Park Hyungjun stated, "For local SMEs and small business owners already struggling with the three highs (high interest rates, high prices, high exchange rates), this Wemakeprice and TMON incident will be another crisis," and added, "In addition to these measures, the city will continue to monitor the scale and situation of damages in Busan and provide customized support tailored to local realities. We will mobilize all available administrative resources to ensure that good local SMEs and small business owners do not suffer further damages."