IBK, 2 Trillion KRW Support for SME Facility Investment

[Asia Economy Reporter Kwon Haeyoung] IBK Industrial Bank of Korea announced on the 9th that it will implement a 2 trillion KRW scale 'Equipment Investment Boom-up Program' starting from the 10th to promote facility investments by small and medium-sized enterprises (SMEs) and mid-sized companies.

This program is one of the follow-up measures to the government's announced '2020 Economic Policy Direction' and will be operated temporarily until the end of this year.

Loans will be supported for new equipment investments made this year at a special interest rate as low as 1.5%. The special interest rate will be applied temporarily until 2024 and varies depending on the company's credit rating and other factors. From 2025, the market interest rate at that time will be applied.

The loan targets are domestic SMEs and mid-sized companies. The use of funds must be for ▲facility investments such as purchasing factory sites or facilities that are planned to be sold or allocated ▲facility investments related to relocating overseas facilities back to Korea ▲facility investments in the materials, parts, and equipment business, only if the new or expanded facility investments occur within this year.

Since the support is provided to promote companies' new equipment investments, ▲maintenance and repair of existing facilities ▲purchase of already built facilities ▲purchase of land without plans for new factory or facility construction are not eligible for support.

IBK Industrial Bank of Korea plans to strictly manage all stages of the loan process from screening to post-management through investment plans and post-verification of investment implementation to ensure that the benefits reach the actual investing companies.

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