Gyeonggi Province to Supply 1.7 Trillion Won in Management Funds for SMEs and Small Business Owners

The Gyeonggi Provincial Government will provide a total of 1.7 trillion won in funds to support the management stability of small and medium-sized enterprises (SMEs) and small business owners in the province.

On January 7, the Gyeonggi Provincial Government announced its plan to supply 1.7 trillion won in funding this year to support not only SMEs and small business owners who are expected to face difficulties in securing financing due to worsening domestic and international economic conditions, but also companies with strong technological potential, regional balanced development enterprises, and export-oriented companies.

The support consists of 1.2 trillion won in working capital and 500 billion won in facility funds.

The working capital for management stability includes 1 trillion won for management stability funds, 80 billion won for specialized support funds, and 120 billion won for special management funds. Facility funds can be used for startup and competitiveness enhancement, such as factory purchase or lease costs and construction expenses.

Gyeonggi Provincial Government

The management stability funds are divided into 600 billion won for SMEs and 400 billion won for small business owners (startup, management improvement, refinancing). The specialized support funds will be allocated with separate limits: 30 billion won for export-oriented companies, 30 billion won for new growth and innovative companies, and 20 billion won for regional balanced development enterprises.

The special management funds consist of 10 billion won for the Special Rechallenge Hope Program, 30 billion won for disaster damage support such as flood and snow damage, 20 billion won for work-life balance companies, and 60 billion won for emergency management stability funds.

The Gyeonggi Provincial Government has frozen the interest rate for direct fund loans at 2.90% per annum, the same as last year. The interest subsidy rate for cooperative loans through partner financial institutions will range from 0.3 to 2.0 percentage points (1.7 to 2.0 percentage points for small business owners). In addition, companies eligible for additional preferential interest rates will receive an extra discount or interest subsidy of 0.3 to 0.5 percentage points.

Choi Jeongseok, Director of Regional Finance at the Gyeonggi Provincial Government, stated, "This year, Gyeonggi Province has focused on continuously supplying low-interest policy funds so that SMEs and small business owners do not face management difficulties due to financial burdens," adding, "We will continue to do our utmost in operating policy funds that support business growth and revitalize the regional economy."

Applications for SME development funds can be submitted both online and offline starting January 19 through the 28 branches and 4 offices of the Gyeonggi Credit Guarantee Foundation, as well as the Gyeonggi SME Development Fund Integrated Management System (g-money.gg.go.kr).