Yongin City Expands Interest Support for SME Partnership Agreement Loans from 2% to 2.5%

Up to a Limit of 500 Million KRW

Yongin City in Gyeonggi Province announced on the 2nd that it will expand interest support for the 'Small and Medium Enterprise (SME) Accompaniment Support Agreement Loan' to assist SMEs struggling due to the economic downturn and uncertain economic outlook.

The 'SME Accompaniment Support Agreement Loan' is a project in which the city and IBK Industrial Bank of Korea agreed last May to provide working capital at low interest rates to support local businesses. IBK Industrial Bank of Korea and the guarantee institution have been supporting guarantee fees up to 1.2%, while the city has been providing 2% interest support.

With this expanded support, the city plans to increase the interest support rate from 2% to 2.5% throughout this year. The support targets SMEs with headquarters or main business sites in Yongin. Through guarantee institution guarantees, up to 500 million KRW per company will be supported, and the loan period can be extended from the basic 1 year up to a maximum of 3 years.

A city official stated, "Since SMEs, which play a pivotal role in the local economy, are facing difficulties due to the economic recession, we have decided to strengthen financial support," adding, "We will continue to prepare various support measures to create a city favorable for business operations."