Jeonbuk Province Supports Extension of Grace Period for SME Development Funds

Jeonbuk Provincial Government Office building.

[Asia Economy Honam Reporting Headquarters Reporter Kim Tae-in] Jeonbuk Province announced on the 11th that it will extend the grace period by one year and provide an average 2.5% secondary interest subsidy to ease cash liquidity and repayment burdens for companies using the 'Jeonbuk Province Small and Medium Enterprise Development Fund,' operated by the Jeonbuk Economic and Trade Promotion Agency (hereinafter referred to as Gyeongjinwon), in order to mitigate the economic contraction in the province caused by the prolonged COVID-19 pandemic.

This support is an emergency measure recognizing the seriousness that the Jeonbuk regional economy could be shaken to its roots if management difficulties continue due to the impact of COVID-19. Jeonbuk Province secured 8 billion KRW through the second supplementary budget of the province to support companies affected by COVID-19.

Eligible applicants are companies currently using the Jeonbuk Province Small and Medium Enterprise Development Fund whose principal repayment is due between today and May 10 of next year, as well as companies whose principal repayments are proceeding normally.

Application conditions require approval from the lending bank and guarantee institution for a one-year extension of the repayment period, and applicants must confirm the possibility of extension with the relevant institutions before applying.

Woo Beom-gi, Jeonbuk Province Deputy Governor for Political Affairs, said, "We hope that this grace period extension support will be a great help for Jeonbuk manufacturing companies facing financial crises due to COVID-19 to regain self-sustainability," and added, "We will also strive to prepare strategies to stabilize corporate management in the post-COVID-19 era."

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