Incheon City Expands Support for SME Business Stability Funds... Including Companies with 10% Revenue Decrease

Interest-Free Loans Up to 200 Million KRW for Establishing Mask Production Facilities

[Asia Economy Reporter Park Hyesook] Incheon City is expanding the support targets for small and medium-sized enterprise (SME) management stabilization funds in response to the spread of the novel coronavirus infection (COVID-19), and will also separately support funds for mask production facilities.

According to the city on the 10th, to minimize the damage to local SMEs caused by the COVID-19 situation, the special SME development fund of 115 billion KRW has been increased by an additional 52 billion KRW, expanding the total to 167 billion KRW.

This special fund includes overseas raw material import companies and SMEs whose sales have decreased by more than 10% compared to the same period last year or the previous quarter in the support targets for management stabilization funds, and 50 billion KRW has been allocated for this purpose.

The loan amount is up to 700 million KRW per company, with repayment conditions of lump-sum maturity (1-2 years) or 6-month grace period with 5 installments (3 years). The city supports the interest rate difference at 2% on the loan amount.

Additionally, to increase the insufficient mask production volume, the city has allocated 2 billion KRW for expanding mask production facilities and establishing a melt-blown (MB) filter production line at existing industrial filter manufacturers, providing interest-free loans up to 200 million KRW.

The support targets are mask manufacturers and nonwoven fabric filter manufacturers, who can receive support when purchasing production facilities for product conversion to nonwoven fabric for masks equivalent to KF80, as well as equipment such as mask finished product packaging machines and molding machines.

Applications for the special fund should be submitted to the Incheon Technopark Smart Manufacturing Innovation Center. Detailed information including supporting documents can be found on the SME customized one-stop support system BizOK website (http//:bizok.incheon.go.kr).

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