5 Trillion Won Unleashed for Anchor Companies... Mayor Park Hyungjoon: "A City Where You Can Invest with Confidence"

MOU Signed to Foster Anchor Companies in Busan and Yeongnam

Alleviating SME Funding Challenges and Supporting the Growth of Promising Enterprises

Busan Metropolitan City will launch a large-scale financial support initiative to alleviate funding difficulties for local small and medium-sized enterprises (SMEs) and foster the growth of promising companies.

On March 3 at 11 a.m., Busan City announced that it would sign a financial business agreement to support the development of anchor companies in the Busan and Yeongnam regions at the International Protocol Room of Busan City Hall. The signing ceremony will be attended by Mayor Park Hyungjoon, Yang Jaesaeng, Chairman of the Busan Chamber of Commerce and Industry, Lee Sangchang, Executive Director of the Korea Technology Finance Corporation, Chae Byungho, Executive Director of the Korea Credit Guarantee Fund, Lee Hosung, President of Hana Bank, and representatives of local businesses.

This agreement aims to systematically foster local SMEs with high growth potential and expand practical financial support for companies facing funding difficulties. Busan City will take the lead, with participation from the Busan Chamber of Commerce and Industry, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Hana Bank, establishing a cooperative system to support local companies.

Under the agreement, a total of 500 billion won in SME policy funds will be formed and full-scale support will commence. Busan City will provide 2.0% interest subsidies, and the Busan Chamber of Commerce and Industry will guide and recommend financial support programs to its member companies. Korea Technology Finance Corporation and Korea Credit Guarantee Fund will offer credit guarantees based on endowment funds, while Hana Bank will provide special endowments and preferential interest rates.

Each company can receive up to 3 billion won in funding, with the interest subsidy limit set at 800 million won. Notably, Busan City raised the interest subsidy rate from last year’s 1.5% to 2.0% this year, further easing financial burdens for companies.

The repayment terms are set at three years. Companies can choose between a structure of two years of grace followed by one year of installment repayment, or a lump-sum repayment after a three-year grace period, allowing them to select the option that best suits their financial management needs and thereby enhancing business stability.

With this agreement, the city plans to strengthen cooperation with financial and guarantee institutions, proactively identify promising companies with technological capabilities and growth potential, and foster them as anchor companies representing Busan and the Yeongnam region. Through these efforts, Busan aims to enhance the competitiveness of the local industrial ecosystem and establish a virtuous cycle that expands corporate investment and creates jobs.

Last year, Busan City provided 2.033 trillion won in policy funds to support the business stability of SMEs and small business owners and to revitalize the local economy. This year, the city also plans to expand the scale of policy fund support beyond last year’s level through a supplementary budget.

Mayor Park Hyungjoon emphasized, "Last year, Busan SMEs achieved record-high exports of 8.44 billion dollars, continuing their growth trajectory. Through this agreement, we will create an environment where companies can invest and grow with confidence, and establish Busan as the central city leading the Yeongnam region’s economy."