Gwangju City Supports Loans for Structural Improvement Funds for Small and Medium Distribution Businesses

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 13th that it will provide early loan support of 2.5 billion KRW in small and medium distribution industry restructuring funds so that small and medium distribution companies struggling due to the economic downturn and COVID-19 can receive funds in a timely manner.

The support targets are small and medium distribution companies in the wholesale and retail sectors that have been registered as businesses in Gwangju and have been operating for more than six months.

However, those who are credit delinquents, currently on hiatus or closed, those with support amounts less than 10 million KRW, and companies that have received small and medium distribution industry restructuring fund loans from Gwangju since 2017 are excluded.

Regarding the support projects and limits, facility improvement funds for improving store facilities and structures can be loaned up to 100 million KRW per company (3 years grace period, 5 years equal repayment), and working capital necessary for store operations can be loaned up to 50 million KRW (1 year grace period, 2 years equal repayment).

The loan interest rate is 1.71% per annum (as of Q1 2020, variable rate) and is adjusted quarterly according to changes in the Ministry of Strategy and Finance’s public fund management fund loan interest rate.

Applications will be accepted from 9 a.m. on the 2nd of next month until funds are exhausted. Application forms can be downloaded from the city’s website and the Gwangju Economic and Employment Promotion Agency website, completed, and submitted in person with the required documents to the Corporate Support Department of the Gwangju Economic and Employment Promotion Agency.

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