Seongnam City Provides Up to 500 Million KRW Support for Companies Affected by COVID-19

Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will provide up to 500 million KRW in operating funds to small and medium-sized enterprises (SMEs) in the area facing difficulties due to the impact of the novel coronavirus infection. In particular, export companies without collateral capacity can also receive loans up to 300 million KRW.

On the 7th, Seongnam City announced that it plans to support companies suffering export and import damages from the spread of the novel coronavirus infection with loans up to 500 million KRW through cooperation loans from partner banks.

The support covers working capital necessary for business activities such as labor costs and raw material purchase costs. The city will subsidize 2% of the loan interest.

Additionally, companies affected that cannot obtain bank loans due to lack of real estate collateral can receive special guarantees up to 300 million KRW.

Loans will proceed through a method where the city recommends and the Gyeonggi Credit Guarantee Foundation provides the guarantee.

The city will also operate a joint corporate situation inspection team with six institutions until the infectious disease situation calms down to identify the damage status of companies caused by the novel coronavirus and to expand support measures.

A city official emphasized, "The proportion of local companies' exports to China is 26%, and imports are 27.2%, showing a large trade volume," adding, "We will continuously monitor support measures from the government, KOTRA, and other related organizations to ensure companies receive necessary support promptly, quickly deliver accurate information, and actively address difficulties that Seongnam City can resolve to minimize corporate damages."

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