Gyeonggi Housing and Urban Development Corporation (GH) has established the 'GH Win-Win Fund' worth 30 billion won to support small and medium-sized enterprises (SMEs) in Gyeonggi Province that are struggling due to high interest rates and rising raw material prices.
For this fund, GH will deposit 30 billion won in operating funds with a financial institution, and the interest generated from this deposit will be used to reduce loan interest rates for SMEs. The eligible recipients are SMEs that have purchased or leased industrial land from GH.
On March 3, GH signed the 'Win-Win Fund Agreement Ceremony for Co-Prosperity with Small and Medium-Sized Enterprises in Gyeonggi Province' with Woori Bank.
This fund offers an unprecedented interest rate reduction. Companies selected as beneficiaries can receive an interest rate reduction of 3.05 percentage points per annum on loans of up to 1 billion won per company.
Gyeonggi Housing and Urban Development Corporation signed the 'GH Win-Win Fund' agreement with Woori Bank on the 3rd. Photo by Gyeonggi Housing and Urban Development Corporation
Each company can save up to 30.5 million won per year in financing costs, which is expected to provide practical support for liquidity and management stability to SMEs facing challenges in securing funds.
Through the establishment of this fund, GH aims to fulfill its social responsibility as a public institution and further strengthen its win-win partnership with SMEs, which are the backbone of the local economy.
Yongjin Kim, President of GH, stated, "We hope this Win-Win Fund will serve as a strong support for local companies to overcome and normalize their business challenges. Going forward, we will closely monitor the status of loans and reflect the voices of companies to continuously discover effective win-win models that enable both companies and GH to grow together."
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