"Will Facility Investment Get a Boost?"... Gwangju to Provide 30 Billion Won in Policy Funds for SMEs

Interest Rate Cap Set at 2.12%

Facility Funds Up to 1 Billion Won, Working Capital Up to 300 Million Won

Online Applications Begin March 4

Additional Rate Cuts for Companies with Decreased Sales

The city of Gwangju is launching a policy fund initiative to support local small and medium-sized enterprises (SMEs) facing difficulties in securing funds for facility investment or operations. On March 2, Gwangju City announced that it will provide a total of 30 billion won in facility modernization funds for the first half of the year, with an annual interest rate cap of 2.12%.

Eligible recipients are manufacturing companies or manufacturing-related service providers with an establishment in Gwangju and a specialization rate of 30% or higher.

Gwangju Metropolitan City Hall. Photo by Bohyun Song

The support limit is up to 1 billion won for facility funds (three-year grace period, five-year equal installment repayment) and up to 300 million won for working capital (one-year grace period, two-year equal installment repayment). Companies certified by Gwangju City-including Pre-Premium Small Giants, Premium Small Giants, Outstanding SMEs, Job-Creating Companies, Gwangju-Type Job Companies, and Industrial Safety and Health Excellence Companies-are eligible for up to an additional 10% in support.

The loan interest rate is variable and adjusted quarterly, but will not exceed the annual cap of 2.12%. Companies whose sales revenue or operating profit has decreased by 10% or more will receive an additional 0.5 percentage point interest rate reduction.

Only companies whose prior working capital loan repayment period has ended may apply for new working capital support.

Applications will be accepted online from March 4 until the assigned amount for the first half of the year is exhausted, through the Gwangju Economic & Job Creation Foundation’s fund loan management system. After review, loans will be provided through eight banks: IBK Industrial Bank of Korea, Kwangju Bank, NH Nonghyup Bank, KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Korea Development Bank.

This content was produced with the assistance of AI translation services.