Chungnam Province to Provide 1.2 Trillion Won in Support for SMEs and Small Business Owners

Increased by 315 Billion Won Compared to Last Year
Largest Amount in Provincial History

Chungnam Province announced on the 12th that it will provide 1.2 trillion won to support small and medium-sized enterprises (SMEs) and small business owners in alleviating funding difficulties and stabilizing management. This is the largest amount ever in the province's history.

In response to challenging economic conditions this year, the province has increased the budget by 315 billion won compared to last year for proactive stabilization of the local economy, and has been accepting applications for policy fund support since the 8th.

The main details include 600 billion won for small business owners (an increase of 100 billion won), 600 billion won for SMEs (an increase of 215 billion won), and a preferential interest rate of 1% for SMEs through NH Nonghyup Bank and Hana Bank.

Small business owners can receive a guarantee certificate from the Chungnam Credit Guarantee Foundation and obtain low-interest loans from banks.

The province will support an annual interest rate of 1.5%, and the maximum loan interest rate is set at CD rate + 1.7% (full guarantee), significantly reducing financial costs.

For SMEs, the support includes 88.5 billion won for start-up and competitiveness enhancement funds, 110 billion won for innovation funds, 3 billion won for corporate rehabilitation funds, 2 billion won for management stabilization funds for rehabilitated companies, and 110 billion won for management stabilization funds for manufacturing companies.

Additionally, there will be 60 billion won for technology innovation management stabilization funds, 10 billion won for ESG management stabilization funds, 1.5 billion won for social economy management stabilization funds, 115 billion won for SME guarantee funds, and 100 billion won for preferential interest rate funds (around 1%) through NH Nonghyup Bank and Hana Bank.

For start-up/competitiveness enhancement funds and innovation funds, companies will bear fixed interest rates of 4.0% and 3.5% respectively, and the province will cover the interest rate difference for up to eight years.

The province will subsidize 2% annually for manufacturing, technology innovation, ESG, and social economy management stabilization funds, while NH Nonghyup Bank and Hana Bank will apply preferential interest rates of around 1% below the base rate for SMEs in the province.

In addition, to resolve the inconvenience of having to visit separate financial institutions when using policy funds, 42 information desks will be operated at Chungnam Credit Guarantee Foundation, Hana Bank, NH Nonghyup Bank, and Chungnam Economic Promotion Agency.

A provincial official stated, "We will do our best to ensure that SMEs and small business owners experiencing management difficulties can find a breakthrough through policy funds."