Gyeonggi Province to Provide Up to 1 Billion Won for Cooperative Asset-Building Projects by Social Economy Organizations

The Gyeonggi Provincial Government will provide up to 1 billion won in support for cooperative asset-building projects by social economy organizations.

On September 16, the Gyeonggi Provincial Government announced that it will be accepting additional applications from companies wishing to participate in the "Support Project for Cooperative Asset-Building by Social Economy Organizations" from October 13 to 17, in order to help social economy organizations facing difficulties in raising funds establish a stable management foundation.

The eligible recipients are social economy organizations that promote community revitalization or shared and collaborative projects. As of the announcement date, the main business site must be located in Gyeonggi Province, and businesses in luxury or entertainment sectors, such as nightlife establishments, are excluded. The loan limit is up to 1 billion won per organization, with support available for up to 90% of the purchase funds stated in the sales contract.

Gyeonggi Provincial Government

A fixed annual interest rate of 2.0% will be applied. Borrowers can choose between a six-year equal repayment period after a four-year grace period, or a ten-year equal repayment period after a five-year grace period.

The support funds can only be used to secure essential assets for business operations, such as real estate purchases or the acquisition of machinery, equipment, and facilities.

The Gyeonggi Provincial Government plans to select priority companies through the Business Selection Review Committee. Final loans will be executed after a financial institution conducts a loan review.

Gong Jeongsik, Director of the Social Innovation Economy Bureau of the Gyeonggi Provincial Government, stated, "Social economy organizations are key players in creating social value, and securing sustainability and self-reliance is a core challenge. Through the cooperative asset-building project, we will support organizations in driving long-term growth and establishing stable conditions for independence."