Korea Rail Network Authority Establishes 20 Billion KRW 'Win-Win Growth Cooperation Fund' to Support Subcontractors

A panoramic photo of the Korea Rail Network Authority building (right) and Korea Railroad Corporation building (left) located in Dong-gu, Daejeon. Provided by Korea Rail Network Authority.

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Korea Rail Network Authority announced on the 12th that it has established a co-growth cooperation fund worth 20 billion KRW with IBK Industrial Bank of Korea and will expand the scope of support using the fund from primary contractors to subcontractors.

The key point is to expand the fund size and target scope to support partner companies struggling due to the prolonged COVID-19 pandemic.

The fund was first established in 2018 through a business agreement between the Rail Network Authority and IBK Industrial Bank of Korea. Based on this, the two organizations have recently created and operated a fund worth around 10 billion KRW, providing low-interest management stabilization funds to 37 partner companies and excellent job-creating enterprises.

Going forward, the Rail Network Authority explained that by doubling the fund size compared to before and expanding the existing support scope, which was limited to primary contractors in the Daejeon, Sejong, and Chungcheong regions, to include subcontractors, about 230 partner companies will be able to receive broad fund support.

So far, in addition to supporting partner companies through the fund, the Rail Network Authority has sought various cooperation and win-win measures with local communities. Examples include reducing national property usage fees, supporting flower farms, and establishing sisterhood relationships with local traditional markets.

Through these efforts, last year the Rail Network Authority was recognized for its efforts such as supporting small and venture companies using railway assets and joint technology development with small businesses, becoming the first public institution to be designated as a ‘Caring Institution’ by the Ministry of SMEs and Startups. A Caring Institution is awarded to organizations that voluntarily cooperate and coexist with partner companies.

Kim Sang-gyun, Director of the Rail Network Authority, said, “We expect the expansion of the co-growth cooperation fund to provide practical help in stabilizing the management of small and medium enterprises,” and added, “The Rail Network Authority will continue to prepare various support measures for small and medium enterprises and small business owners and make efforts to create jobs.”

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