Chungnam to Provide 385 Billion Won for SMEs... First Quarter Development Fund Applications Open from the 26th

Loan Limit for Startups and Innovative Companies Raised to 3 Billion Won
Eased Financial Burden for Manufacturing and Petrochemical Sectors

Chungnam Economic Promotion Agency Building View

Chungnam Province is launching a large-scale policy fund initiative to support local small and medium-sized enterprises (SMEs) struggling with the economic slowdown and rising financial costs. A total of 385 billion won in SME development funds will be provided on a quarterly basis, and the loan limits for startups and innovative companies will be significantly increased.

The Chungnam Economic Promotion Agency announced on January 20 that it will begin accepting applications for the first quarter SME development fund loans in Chungnam starting from January 26.

This funding will be operated through an indirect loan system via financial institutions, with the provincial government subsidizing a portion of the interest paid by companies.

The SME development fund established for this year totals 385 billion won, allocated as follows depending on the fund type: 85 billion won for startup and competitiveness enhancement funds (including disaster relief funds), 120 billion won for innovation funds, 130 billion won for manufacturing management stabilization funds (including special funds for holidays), 40 billion won for technology innovation management stabilization funds, and 10 billion won for ESG management stabilization funds.

The support funds consist of facility funds for expanding production facilities and acquiring machinery and equipment, as well as working capital for business operations such as purchasing raw materials and covering labor costs.

Notably, starting this year, the loan limit per company for those utilizing startup and competitiveness enhancement funds or innovation funds has been raised from the previous maximum of 2.5 billion won to 3 billion won.

For startup funds, a new system will be introduced in July that provides a 0.25% interest rate reduction for the first year to companies that have been in business for less than seven years from the date of business or factory registration.

The manufacturing management stabilization fund has been revised so that, regardless of workforce size, the maximum loan limit is now set uniformly at up to 300 million won per company.

Additionally, companies in the petrochemical and steel industries will receive an extra 0.5% interest subsidy to help alleviate sector-specific management burdens.

SME development fund applications for the first quarter of 2026 can be submitted online through the Chungnam Economic Promotion Agency's SME funding system. After application, loans are recommended following a review process. As funds may be exhausted early once the limit is reached, companies are advised to carefully check eligibility requirements and schedules in advance.