Yangyang County to Launch 'SME Development Fund Support Program' for Business Stability of SMEs and Small Business Owners Starting January 12

Annual Interest Subsidy of 3% for Two Years
Targeting SMEs and Small Business Owners
Loan Support Totaling 4.3 Billion Won

Yangyang County in Gangwon Province announced on January 9 that it will launch the "Small and Medium Enterprise Development Fund Support Program" starting from January 12 to help stabilize the management of small and medium-sized enterprises (SMEs) and small business owners.

Aerial view of Yangyang County Office.

The Small and Medium Enterprise Development Fund Support Program aims to promote the healthy growth of SMEs and small business owners. Under this program, the county will subsidize a portion of the interest for companies that receive loans from financial institutions partnered with Yangyang County.

The partner financial institutions include a total of nine organizations: NH Nonghyup Bank Yangyang Branch, Ganghyeon Nonghyup, Seogwang Nonghyup, Sokcho Yangyang Livestock Cooperative, Shinhan Bank Yangyang Branch, Yangyang Nonghyup, Yangyang Saemaeul Geumgo, Yangyang Credit Union, and Hajodae Nonghyup.

Eligible companies that receive loans for facility investment or operating funds can receive an annual interest subsidy of 3% for two years.

This year, the total support amount is set at 4.3 billion won based on the loan principal. Small business owners can receive loans of up to 50 million won, while companies can receive loans ranging from 100 million won to a maximum of 500 million won per company, depending on the business type. The program will end early if the budget is exhausted.

Eligible applicants are corporations with their head office, main office, or business site located in Yangyang County, and sole proprietors whose business site and representative's address are both located in Yangyang County.

However, the following are excluded from support: companies currently regulated as delinquent clients by financial institutions; companies that encourage luxury, extravagant consumption, or speculation; closed or suspended businesses; companies with overdue national or local taxes or other public dues; and companies for which two years have not elapsed since the expiration of the final interest subsidy after receiving the maximum loan support.

In addition, if a business performance report is not submitted within 90 days from the date of the loan and within one month after project completion, the interest subsidy will be suspended.

Companies and small business owners wishing to apply for loans should first consult with a partner financial institution, then complete the application form and business plan and submit them in person to the Corporate Support Team of the Economic and Energy Division at the county office. The county will conduct a thorough review, including eligibility, overdue national and local taxes, and whether the applicant exceeds support limits, to select the final recipients.

Lee Youngsun, Head of the Economic and Energy Division, stated, "We hope this program will help ease the financial burden for local SMEs and small business owners facing management difficulties," adding, "We will continue to develop and implement policies that provide practical assistance to businesses."