"Saving Small and Medium Enterprises" ... Changwon Special City Launches 'Comprehensive Support Project for SMEs'

Rapid Provision of 200 Billion KRW in SME Development Funds
Increased Loan Limits for Special Enterprises

Changwon Special City in Gyeongnam is launching comprehensive support projects to alleviate the management difficulties of small and medium-sized enterprises (SMEs) and strengthen their competitiveness in order to revitalize SMEs in earnest.

Jo Young-wan, Director of the Economic and Employment Bureau, is explaining measures to support small and medium-sized enterprises.

◆ Support for SME Development Funds

First, 200 billion KRW in SME development funds (160 billion KRW for management stabilization funds and 40 billion KRW for facility funds) will be rapidly provided with a focus at the beginning of the year. In addition, the loan limits for special enterprises will be raised, and the support requirements for startup companies will be relaxed to allow more companies to benefit.

The existing loan limits for special enterprises were 400 million KRW for management stabilization funds and 700 million KRW for facility funds, but this year, they will be increased to 500 million KRW and 1 billion KRW respectively, accelerating efforts to expand support for special target companies such as Changwon-type strong small enterprises and family-friendly certified companies.

Furthermore, previously only startups with sales under 100 million KRW could apply, but in 2025, this restriction will be removed to support stable loans for startups that have difficulty obtaining funds.

The support targets are SMEs headquartered and operating in Changwon City, including registered manufacturing factories, software industry companies, and cooperative companies in shipbuilding, aviation, nuclear power, and defense industries. The conditions are a maximum loan amount of 1 billion KRW with an interest rate of 2.5% per annum, with a two-year grace period and lump-sum repayment.

Applications can be made through nine commercial banks that have signed business agreements with the city (BNK Gyeongnam, KB Kookmin, IBK Industrial Bank, NH Nonghyup, iM Bank (formerly Daegu Bank), BNK Busan, Shinhan, Woori, and KEB Hana Bank).

Following the SME development fund loan support, projects to foster a social atmosphere that harmonizes family and work life and to attract investment in listed companies in the Changwon area will also be promoted.

◆ Expansion of Family-Friendly Certified Companies

In September last year, Changwon City formed a Family-Friendly Certified Companies Council and set a concrete goal to expand the number of family-friendly certified companies from 70 to 150 by 2028. As a follow-up measure this year, the Changwon Industrial Promotion Agency plans to provide customized consulting to 15 local SMEs.

The family-friendly certification is a system granted by the Ministry of Gender Equality and Family to companies and public institutions that exemplary operate family-friendly systems such as support for childbirth and child-rearing, flexible working hours, and dependent family support systems through an evaluation process. The city expects that expanding family-friendly certified companies, which practice work-life balance as a model, will help attract young populations and increase birth rates.

◆ Joint IR for Listed Companies

Changwon City will hold a joint IR (Investor Relations) event for listed companies to support investment attraction, which was proposed at the 3rd meeting of the Changwon Economic Council held in July last year, early in the first half of the year in cooperation with the Changwon Chamber of Commerce and Industry.

This joint IR targets 43 listed companies headquartered in Changwon (24 KOSPI and 19 KOSDAQ companies). Analysts, fund managers, and institutional investors will be invited to attend corporate presentations and on-site tours (factory visits). Additionally, local university students and young people will be invited to introduce local companies, and IR opportunities will be provided for venture and startup companies.

◆ Customized Support for Changwon-Type Strong Small Enterprises and Others

The city plans to drive the continuous growth of local SMEs by implementing the ▲Changwon-type Strong Small Enterprise Development Project to nurture promising SMEs into small but strong companies, ▲On-site Difficulty Consulting Support Project to actively respond to management and technical difficulties, ▲ESG Management Activation Support Project for R&D consulting and ESG management response, and ▲SME Capacity Building (Scale-up) Support Project for patent applications and prior technology investigations.

Jo Young-wan, Director of the Economic and Job Creation Bureau, stated, “As companies are facing difficulties due to high exchange rates, high prices, and high interest rates, we will do our best to prepare policies so that SMEs can overcome the crisis and continue to grow.”