1 Trillion KRW in Loans to Be Provided in the First Half of This Year
Applications Open from March 4
Jeju Special Self-Governing Province announced on the 27th that it will implement low-interest loan support and repayment assistance through the Jeju Tourism Promotion Fund in the first half of this year to support the local tourism industry.
This support program has been prepared to help the Jeju tourism industry overcome its current crisis and achieve sustainable growth in the face of challenges such as international instability and a decrease in flights. Loan applications can be submitted online or in person at the Tourism Policy Division from March 4 to 21.
The total loan support available amounts to 100 billion KRW, covering facility funds (new or renovation), business stabilization funds, and digital improvement funds, with interest rate differences being subsidized. This year’s budget is 12 billion KRW, including 6 billion KRW from the lottery fund. The application limit for facility (new or renovation) funds is 700 million KRW for individuals and 1.5 billion KRW for corporations, but if eco-friendly energy facilities are introduced, the limit increases to 800 million KRW for individuals and 1.7 billion KRW for corporations. For business stabilization funds, the limit is 500 million KRW for individuals and 700 million KRW for corporations, with variations by industry. For digital improvement funds, the limit is 100 million KRW for individuals and 250 million KRW for corporations.
To ease the burden on local tourism businesses, the repayment terms for facility funds with higher limits have been improved from a 2-year grace period with 3-year equal installment repayment to a 3-year grace period with 4-year equal installment repayment. The business stabilization and digital improvement funds maintain the 2-year grace period with 3-year equal installment repayment. The interest rate is set at 0.75% lower than the base rate of the Ministry of Economy and Finance's Public Fund Management Fund, which is 2.12% as of the first quarter of 2025, and will fluctuate quarterly until maturity. The digital improvement funds are provided at an ultra-low annual interest rate of 1.5% to support digital transformation in tourism businesses.
Repayment assistance is a system designed to reduce the repayment burden for businesses currently repaying principal or those whose repayment is due, by providing a one-year principal repayment deferment or extending the principal installment repayment period by one or two years, depending on sales or income. This year, 1,900 businesses with a total of 352.1 billion KRW are eligible for support.
Jeju Province has prepared these support measures considering the ongoing management difficulties caused by increasing debt and declining income in the tourism industry. Applications for repayment assistance will be accepted year-round from the 28th until the end of this year through the lending banks and the Tourism Policy Division. For more details on the 2025 Jeju Tourism Promotion Fund loan and repayment support, please refer to the provincial website.
Kim Heechan, Director of Tourism Exchange at Jeju Province, said, "We hope this support will help stabilize the management of tourism businesses facing difficulties," adding, "We will continue to develop various support policies for the sustainable development of Jeju's tourism ecosystem."
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