Kijeongwon Provides 250 Billion KRW Special Support to SMEs Conducting R&D

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Technology Information Promotion Agency announced on the 16th that it will provide 250 billion KRW in special funds for business stabilization to overcome the crisis caused by the novel coronavirus infection (COVID-19).

This fund was prepared to support business stabilization funds for small and medium enterprises conducting research and development (R&D) through cooperation with IBK Industrial Bank and Hana Bank.

If working capital for business stabilization is needed, a preferential interest rate of up to 1.83% will be applied through Industrial Bank and Hana Bank. Loans can be obtained at an average interest rate of 2.2% (based on 2019).

Also, preferential interest rates equivalent to other emergency business stabilization funds can be applied without issuing guarantees such as credit guarantees or technology guarantees.

The loan limit per small and medium enterprise is up to 500 million KRW for new loans. The applicable interest rate and loan amount may vary by company depending on the private banks' loan screening.

The agency supports low-interest loans of 670 billion KRW annually to promote commercialization of new technologies and new products for companies that have completed (successfully) small and medium enterprise R&D support projects.

Additionally, a special fund of 250 billion KRW has been temporarily prepared to support companies conducting R&D support projects that were previously excluded from support, enabling smooth R&D execution even during the COVID-19 crisis.

Accordingly, a total of 920 billion KRW in commercialization and business stabilization funds will be provided as low-interest loans to small and medium enterprises participating in the 2020 R&D support projects.

Small and medium enterprises conducting R&D wishing to apply can do so from the 17th of this month through the Ministry of SMEs and Startups' Technology Development Project Integrated Management System. Applications will be accepted on a rolling basis until the support limit is exhausted.

Lee Jaehong, Director of the agency, said, "We decided to provide business stabilization funds to minimize the difficulties faced by small and medium enterprises conducting R&D due to the impact of COVID-19," and added, "We plan to actively support small and medium enterprises to focus on R&D in a better environment through close cooperation between the agency and the commercialization-dedicated banks of the Ministry of SMEs and Startups."

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