Chungnam to Support Small and Medium Enterprises with 550 Billion KRW This Year

[Asia Economy (Naepo) Reporter Jeong Il-woong] Chungnam Province announced on the 3rd that it will invest a budget of 550 billion KRW this year to foster local small and medium-sized enterprises (SMEs).

The budget represents an increase of 30 billion KRW compared to the previous year, and the province plans to raise the SME fostering budget to 600 billion KRW by 2022.

The support targets are SMEs and small business owners in manufacturing, knowledge service industries, cosmetics and beauty industries, etc., who have business establishments in Chungnam as of the application date.

The support amounts by sector are divided as follows: 40 billion KRW for startup funds, 50 billion KRW for competitiveness enhancement funds, 130 billion KRW for innovation-type funds, 20 billion KRW for corporate rehabilitation funds, 100 billion KRW for manufacturing business stability funds, 60 billion KRW for technology innovation-type business stability funds, 5 billion KRW for social economy funds, 5 billion KRW for venture and promising startup funds, and 140 billion KRW for small business owner funds.

Among these, the budget for stabilizing the management of social economy enterprises increased from 3 billion KRW last year to 5 billion KRW this year. This fund will be used to enable companies to receive credit guarantees of up to 300 million KRW per company through the Korea Credit Guarantee Fund.

The province also newly established venture and promising startup funds this year to support the creation of a stable startup foundation. This fund supports regional prospective startup companies with technological capability and business potential but lacking financial resources to receive guarantees and obtain loans without interest burden for up to two years.

In addition, 10 billion KRW was added to support funds to overcome the three major crises of low birthrate, aging, and polarization, aimed at resolving management difficulties of small business owners and self-employed persons. Companies can receive loans after obtaining guarantees through the Chungnam Credit Guarantee Foundation, and the province compensates 2% to 2.5% of the interest.

For more detailed information regarding support for SME fostering funds, please check the announcement and notice section on the province’s official website.

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