Gyeonggi Province will provide up to 1 billion KRW at an annual interest rate of 2% to support a stable management environment for social economy organizations facing difficulties in financing.
On the 24th, Gyeonggi Province announced that it will recruit participating companies for the ‘Social Economy Organization Cooperative Asset Support Project’ from April 14 to 18, targeting social economy organizations that promote community revitalization or shared and collaborative projects.
Eligibility requires the main business location to be in Gyeonggi Province as of the announcement date, excluding luxury and entertainment businesses such as nightclubs. Preliminary social enterprises, preliminary village enterprises, self-support enterprises, and social venture companies can participate as part of a consortium.
The loan limit is up to 1 billion KRW per location, supporting up to 90% of the purchase funds stated in the sales contract.
The loan interest rate is a fixed 2.0% per annum, and the repayment period can be chosen between 10 years (4 years grace period followed by 6 years of equal repayment) or 15 years (5 years grace period followed by 10 years of equal repayment). The support funds can only be used for securing essential assets for business operations such as real estate purchases, machinery, equipment, and facilities.
Gyeonggi Province will form the ‘Gyeonggi Province Cooperative Asset Support Project Business Selection Review Committee’ to conduct transparent business selection. Priority companies will be selected in the first screening, and after financial institution loan screening within the total budget of 4 billion KRW, the final loan will be executed.
Social economy organizations wishing to apply can receive preliminary consultation at Shinhan Bank Suwon Station Branch, the designated partner bank.
Gong Jeong-sik, Director of the Social Innovation Economy Bureau of Gyeonggi Province, said, "Since 2023, Gyeonggi Province has been promoting this project to enable social economy organizations struggling with financing to operate stably through asset acquisition. We will continue to actively support social economy organizations to establish a sustainable growth foundation."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
