400 Billion Won in Support for Local SMEs This Year, Including 30 Billion in the First Half
Promoting Business Stability in Manufacturing Amid Economic Slowdown
Low-Interest Facility Funds to Minimize Financial Burden
Kang Kijeong, Mayor of Gwangju, attended the "2025 Gwangju Economy Together Steady Steady Steady" event held on January 23 at the Gwangju Chamber of Commerce and Industry main conference room. He took a commemorative photo with representatives from 76 organizations including economic groups and industries after pledging to implement economic measures to increase consumption, reduce burdens, and boost investment. Provided by Gwangju City
On September 1, the Gwangju City Government announced that it will provide an additional 10 billion won in funds for structural advancement to support local small and medium-sized enterprises (SMEs) struggling due to the economic downturn. Following 30 billion won in the first half of the year, a total of 40 billion won will be offered as loans to local SMEs this year.
This support program is being implemented as part of the "2025 Gwangju Economy Together Steadily (Good Consumption, Good Finance, Good Jobs)" project announced earlier this year. It targets companies based in Gwangju with a manufacturing specialization rate of 30% or higher.
The support consists of up to 1 billion won for facility funds and up to 300 million won for operating funds. The repayment terms are a three-year grace period with five-year equal installments for facility funds, and a one-year grace period with two-year equal installments for operating funds. Certified preferential companies may be eligible for additional support.
Notably, the interest rate is set at a low 2.12% per annum, which is lower than current market rates. For companies whose sales or operating profit have decreased by 10% or more, the rate will be further reduced by 0.5 percentage points, significantly easing their financial burden.
Applications for funds will be accepted online from September 1 until the funds are exhausted, through the loan management system of the Gwangju Economic Promotion and Win-Win Job Foundation. Final loans will be executed after review by eight banks: Gwangju Bank, IBK Industrial Bank of Korea, Nonghyup (National Agricultural Cooperative Federation), KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Korea Development Bank.
Hong Nasoon, Director of Startup Promotion, stated, "We hope that this additional support for structural advancement funds will strengthen the production and service base of SMEs and provide practical help for business stability. We will continue to review and implement various policies tailored to the needs of local companies, including increasing support limits."
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