Gyeongnam Province Rapidly Executes 12.3 Billion KRW to Fully Support the Auto Parts Industry

[Image source=Yonhap News]

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kang Woo-kwon] Gyeongsangnam-do announced on the 30th that it will expand and implement liquidity support and corporate support projects to respond to the crisis caused by the suspension of automobile production and parts supply disruptions in the United States and Europe due to the spread of the novel coronavirus infection (COVID-19).

There are 1,931 companies related to the automobile parts industry in the province, accounting for 14.1% of the nation, and last year's exports amounted to 3.016 billion dollars, accounting for 13.4% of the nation, playing a significant role in the regional industrial economy.

The province plans to promptly execute this year's corporate support project budget of 12.38 billion won to support companies facing difficulties by assisting in prototype production, performance evaluation, and securing future car technology, anticipating damage to parts companies in the province due to the spread of COVID-19 in China.

Furthermore, an additional 1.2 billion won will be secured in the April supplementary budget to newly promote the automobile parts manufacturing process improvement support project, and the future car parts demonstration and commercialization support project will be expanded to strengthen the competitiveness of the parts industry and enhance corporate self-reliance.

Since last year, funds have been contributed to the Korea Credit Guarantee Fund to support liquidity necessary for management stabilization, facility investment, and technology development for automobile parts companies in the province.

Also, from the 28th of last month, in response to the spread of COVID-19, the support scale has been expanded, increasing the limits by 5 billion won for small and medium enterprises to 20 billion won and by 10 billion won for medium-sized enterprises to 35 billion won compared to the previous year, and companies in the province can receive a 0.2% interest rate reduction with a fixed interest rate.

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