Early Provision of 25 Billion KRW ‘Hope Incheon Small Business Management Stabilization Fund’
Incheon City will provide 1.535 trillion KRW in funding to support small and medium-sized enterprises (SMEs) this year. The amount has been increased by 200 billion KRW compared to last year to help local businesses struggling with high interest rates.
By support type, the funding includes 1.23 trillion KRW for interest rate differential compensation to cover part of bank interest, 230 billion KRW for credit guarantee fund accounts receivable insurance support, 40 billion KRW for technology guarantee fund agreement guarantees, and 35 billion KRW for structural advancement funds.
Last year, SME development funds were provided quarterly and were exhausted within 20 minutes of application due to high demand. Therefore, the city plans to expand the support scale this year and improve efficiency by operating funds in the first and second halves of the year, while also expanding partner banks such as NongHyup and Shinhan Bank.
The scope of support has also been expanded to benefit companies in various fields. Priority support will be given to companies awarded the City Industrial Peace Award, companies selected in the 2024 policy idea contest, local product purchasing companies, and local research and development innovation companies.
In particular, the city has signed an agreement with the Korea Electric Power Corporation (KEPCO) Incheon Headquarters to provide low-interest special funds for energy efficiency and KEPCO’s energy efficiency project subsidies for the first time. Through this, the city plans to improve energy use efficiency in SMEs, reduce energy costs, and simultaneously promote environmental protection.
SMEs wishing to apply can do so from the 20th through the city’s customized SME support system, 'BizOK.' An Incheon city official stated, "This year, we will enhance the accessibility and efficiency of SME development fund support so that more SMEs can benefit."
Meanwhile, ahead of the Lunar New Year holiday, the city will provide early support starting from the 22nd for the 'Hope Incheon Small Business Management Stabilization Fund' totaling 25 billion KRW to help stabilize small business management. The city will invest 2 billion KRW as guarantee fund contributions and 460 million KRW for interest rate differential compensation, with loans provided through banks (Shinhan, NongHyup, Hana, Kookmin, Woori, Kakao) that have agreements with the Incheon Credit Guarantee Foundation.
Loans of up to 30 million KRW per company are available, with repayment structured as a one-year grace period followed by monthly installments over five years. The city will support loan interest rates of 2.0% in the first year and 1.5% in the second and third years. Additionally, guarantee fees will be maintained at around 0.8% annually to minimize the financial burden on small business owners.
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