Busan City Announces 'Small and Medium Enterprise Funding Support Plan'

Relieving Financial Difficulties of Local Companies through Timely Support of Policy Funds

Busan City Hall exterior view. (Photo by Busan City)

[Asia Economy Yeongnam Reporting Headquarters, Reporter Yoon Yoseop] Busan City announced the ‘2020 Small and Medium Enterprise (SME) Fund Support Plan’ on the 14th to foster local SMEs and small business owners.

The support formats include interest subsidy methods that cover part of the loan interest (0.8~2.5%), low-interest loan methods, and special guarantee methods supporting vulnerable industries within the region (such as shipbuilding and marine equipment, automobile parts companies).

This year’s fund support features the establishment of a new interest subsidy fund for companies affected by Japanese export restrictions, in addition to the existing SME development and operating funds, and an increase in the support limit per small business owner for special funds from 70 million KRW to 100 million KRW.

The special fund for ‘small business owners with less than three years since establishment,’ which has received great response from micro self-employed individuals with preferential conditions (interest subsidy preferential rate 1.7%, general 0.8%), will be supported at a scale of 400 billion KRW again this year following last year. The increase in this year’s support limit is expected to expand the beneficiary scope and provide relief to small business owners.

Continuous support such as startup special funds and commercial asset funds for early-stage entrepreneurs will solidify the foundation for startups, and special guarantees for regional representative industries such as shipbuilding marine equipment and automobile parts companies will be extended until the end of this year to serve as an economic safety net.

Detailed support information and contact details for each fund can be found on the Busan City website.

Gomija, Head of the Innovation Economy Division of Busan City, said, “Timely support of policy funds will somewhat alleviate the financial difficulties of local companies,” and added, “We will continue to strive to stabilize the management of local companies by proactively organizing policy funds tailored to economic trends by industry.”

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