Gyeonggi Province will urgently inject 20 billion KRW in emergency management funds to alleviate financial difficulties faced by small and medium-sized enterprises (SMEs) ahead of Chuseok.
On the 25th, Gyeonggi Province announced that it will accept applications for special Chuseok management funds starting from the 26th to stabilize the management of companies struggling due to sluggish domestic demand and high interest rates, and to resolve temporary financial difficulties occurring around Chuseok, thereby promoting job stability and revitalizing the local economy.
Gyeonggi Province expects that the demand for funds from local companies will be higher than usual this year due to the prolonged domestic and international economic downturn.
The support target for this fund is SMEs within the province as defined by the "Framework Act on Small and Medium Enterprises" (Article 2).
The loan conditions are up to 500 million KRW per company with a one-year maturity and lump-sum repayment. The loan interest rate can be used at 2% lower than the bank rate through Gyeonggi Province’s interest rate subsidy support. This support is provided separately regardless of existing working capital support. However, the support will end early once the funds are exhausted.
Local SMEs wishing to apply can visit one of the 26 branches and 4 offices of Gyeonggi Credit Guarantee Foundation (representative number 1577-5900) or apply online through the G-money system.
Heo Seung-beom, Director of the Economic Office of Gyeonggi Province, said, "This measure was prepared to resolve liquidity crises so that SMEs in the province, which are experiencing an economic recession, do not face worsening financial difficulties ahead of Chuseok." He added, "Gyeonggi Province will continue to do its best to support SMEs facing emergency liquidity crises so that they can utilize the necessary funds at the necessary time."
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