From July 7, Relief for SMEs Facing Financial Struggles
Loans Up to 900 Million KRW, Interest Subsidies Up to 3.5%
Jinju City in South Gyeongsang Province will begin accepting applications for loans totaling 45 billion KRW for local small and medium-sized enterprises (SMEs) on a first-come, first-served basis starting July 7, 2025, until the funds are exhausted. The initiative aims to support business stability and enhance the competitiveness of local SMEs.
This project is part of the city's annual SME development fund operation plan, which was established earlier this year with a total budget of 100 billion KRW. In the first half of the year, the city supported 145 companies with loans amounting to 50.4 billion KRW. For the second half, Jinju City plans to provide an additional 45 billion KRW in loan funds to ensure that more companies receive tangible financial support.
The maximum loan limit per company varies depending on the size of its capital and sales. Companies with less than 300 million KRW in capital can apply for loans of up to 200 million KRW, while those with 2 billion KRW or more can apply for up to 900 million KRW.
The interest rate differential on the loans will be subsidized by up to 2.5% per year for general funds and up to 3.5% per year for preferential funds. Repayment terms include either a three-year grace period followed by four equal installments over one year, or a four-year grace period with a lump-sum repayment at maturity.
Eligible applicants are SMEs headquartered and operating in Jinju City that have completed factory registration and have a manufacturing specialization rate of at least 30%. This includes manufacturing companies, SME cooperatives as defined by Article 2 of the Small and Medium Enterprise Cooperatives Act, and software development firms. In particular, direct exporters, companies in regional specialized industries such as bio and silk, companies in regional strategic industries such as aerospace and ceramics, outstanding enterprises, and exemplary long-standing companies are eligible for preferential funds and can receive higher interest subsidies.
Companies wishing to apply for loans should first consult with the designated financial institutions regarding loan limits and interest rates. After preparing the required documents, they can submit their applications in person at the Jinju City Hall Business and Trade Division or by registered mail.
The designated financial institutions for loan processing are BNK Kyongnam Bank, IBK Industrial Bank of Korea, NH Nonghyup Bank, KEB Hana Bank, KDB Korea Development Bank, Shinhan Bank, Woori Bank, KB Kookmin Bank, and Jinju Savings Bank, totaling nine institutions.
A Jinju City official stated, "Despite the challenging economic environment, we plan to continue providing active support in the second half of the year so that companies can secure funds stably and pursue sustainable growth," adding, "We encourage many companies in need of funding to apply."
Meanwhile, in June, Jinju City held a joint briefing session with the Western Gyeongnam Customs Office to help local exporters mitigate risks and strengthen their capabilities in response to U.S. reciprocal tariff measures. The city is also actively working to minimize external impacts on exporters by providing support such as credit guarantee fee subsidies (up to 3 million KRW), export logistics cost support for exports to the U.S. (up to 5 million KRW), and expanding export insurance premium support to a maximum of 2 million KRW.
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