Ministry of Culture, Sports and Tourism Provides Emergency Support with 50 Billion Won Special Loans for Tourism Operators

Simultaneous 700 Billion Won Tourism-Focused Three-Type Financial Support

The government will promptly support the tourism industry, which has been hit by domestic and international issues.

On the 13th, amid concerns that the influx of foreign tourists may decrease due to the chaotic political situation including the president's announcement of martial law, the area in front of a sports brand store in Myeongdong, Jung-gu, Seoul, which was crowded with foreign tourists lining up early, appeared quiet. Photo by Kang Jin-hyung

The Ministry of Culture, Sports and Tourism announced on the 30th that it will implement the ‘Special Operating Fund Loan from the Tourism Promotion Development Fund for the First Half of 2025’ until January 31, 2025, to support the tourism industry affected by damages. This special loan is part of the tourism market stabilization measures discussed at the ‘9th National Tourism Strategy Meeting’ held on the 26th.

The emergency special loan is an urgent support program prepared to proactively prevent recent damages in the travel industry, targeting 13 major sectors including travel agencies, hotels, and MICE (Meetings, Incentives, Conferences, and Exhibitions) related industries. The total support amount is approximately 50 billion KRW, with up to 1 billion KRW in operating funds provided per company.

The loan interest rate is preferentially reduced by 1.25 percentage points (P) compared to the existing rate, lowering the actual burden rate to 1.78%, and the repayment period is extended from 5 years to 6 years.

Along with this special loan, the Ministry of Culture, Sports and Tourism plans to run three financial support programs in the first half of 2025, including general loans from the tourism fund totaling 700 billion KRW, interest subsidy projects, and credit guarantee loans.

On the 30th, as the loan threshold of first-tier financial institutions such as banks rises amid the economic downturn, the scale of card loans and cash services has reached an all-time high. Card loan advertisements are posted on Myeongdong Street in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The general loan from the tourism fund is about 350 billion KRW, the interest subsidy project compensates part of the market bank loan interest (2.5~3%) and supports a loan scale of 50 billion KRW. The credit guarantee loan provides credit guarantees to small and medium-sized tourism companies lacking collateral, supporting up to 200 million KRW. Applications and inquiries for support can be made through tourism associations from the 30th until January 31, 2025.

Detailed information can be found on the Ministry of Culture, Sports and Tourism’s website or the Loan Continuous Support Center’s website, and inquiries can also be made via phone consultation.

A Ministry of Culture, Sports and Tourism official said, "Due to various recent domestic situations, inquiries about the safety of foreign visitors have continued, and MICE events sensitive to safety issues are being canceled," adding, "Through this special loan, we will establish a safety net for the tourism industry, promptly support damages, and promote market stabilization while preparing various policies to revitalize local tourism and support the industry in the future."

This content was produced with the assistance of AI translation services.