Gyeongbuk Province announced on the 30th that it has established emergency financial support measures for the swift recovery and business stabilization of small and medium-sized enterprises (SMEs) and small business owners who suffered unexpected damages from the large-scale wildfire that first broke out in Uiseong-gun and spread to Andong-si, Cheongsong-gun, Yeongyang-gun, and Yeongdeok-gun.
For SMEs whose factories and facilities were destroyed by the wildfire, Gyeongbuk Province will utilize 30 billion KRW of this year's disaster emergency management stabilization funds, providing up to 500 million KRW per company, with a one-year grace period and scheduled repayment. During the one-year grace period, 3% interest support will be provided.
For small business owners, special disaster guarantees will be provided through the Gyeongbuk Credit Guarantee Foundation, with a guarantee limit of 300 million KRW or the lesser amount of the damage, and the guarantee fee rate will be reduced to 0.1% (for special disaster areas). The terms are a two-year grace period and three-year installment repayment. During the grace period, 3% interest support will be provided in the first year and 2% in the second year, and guarantee fees will be supported for five years.
To receive support, a disaster damage confirmation certificate must be issued by the city or county office or the local administrative office. For inquiries regarding related policy funds, SMEs should contact the Gyeongbuk Economic Promotion Agency's Wildfire Damage Policy Fund Support Task Force, and small business owners should contact the Gyeongbuk Credit Guarantee Foundation's Wildfire Damage Policy Fund Support Task Force.
An on-site one-stop financial support consultation center will be operated for wildfire-damaged companies at the temporary management office in Namhu Industrial Complex, Andong-si, where affected companies are concentrated, starting at 2 p.m. on the 31st.
Representatives from Gyeongsangbuk-do, Daegu-Gyeongbuk Regional Office of SMEs and Startups, Gyeongbuk Small and Medium Business Corporation, Korea Technology Finance Corporation, Andong branch of the Ministry of Employment and Labor, Gyeongbuk Credit Guarantee Foundation, and Gyeongbuk Economic Promotion Agency will attend the consultation center to provide information on government and provincial financial support programs and consulting to affected companies.
The Ministry of SMEs and Startups will also provide emergency government policy funds to SMEs and small business owners in wildfire-affected areas.
Through the Small and Medium Business Corporation, up to 1 billion KRW per company will be provided as disaster SME support funds at a low fixed interest rate of 1.9%, with a two-year grace period and three-year installment repayment. Small business owners can receive up to 100 million KRW per company in emergency management stabilization funds through the Small Enterprise and Market Service at a fixed low interest rate of 2.0%, also with a two-year grace period and three-year installment repayment.
The Ministry of the Interior and Safety will also provide emergency loans of 30 million KRW and a one-year extension for existing loan repayments to wildfire-affected SMEs through Saemaeul Geumgo.
Going forward, Gyeongsangbuk-do plans to continue requesting the Ministry of SMEs and Startups to expand policy fund support amounts for SMEs and small business owners designated as a special disaster area, and will promptly promote and support any additional support measures for affected companies.
Lee Cheolwoo, Governor of Gyeongbuk Province, stated, "We will do our utmost to find the best support measures so that SMEs and small business owners affected by the wildfire can recover as soon as possible," and added, "We will focus all provincial efforts on alleviating the financial burden and normalizing the management of affected SMEs and small business owners."
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