Ulsan City to Reduce Interest Rates and Provide Funds to Small and Medium Enterprises

Supply of 90 Billion KRW in Stability Funds for SMEs ... 3% Loan Interest Burden

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Sharon] Ulsan City is taking early action to provide the '2020 2nd Small and Medium Enterprise (SME) Management Stabilization Fund' to alleviate financial difficulties for SMEs.

On the 18th, Ulsan City announced that it will promptly supply 90 billion KRW of SME management stabilization funds, a significant increase compared to previous years, to support SMEs facing relative difficulties in securing funds, as government financial support has mainly focused on small business owners since the outbreak of the novel coronavirus infection (COVID-19).

The support targets SMEs in manufacturing, wholesale, and retail sectors with business locations in the city. The city will subsidize up to 3% of the loan interest for each company, up to 400 million KRW (500 million KRW for export companies).

Repayment options include a lump-sum repayment after a 2-year grace period, installment repayment over 2 years after a 1-year grace period, or installment repayment over 2 years after a 2-year grace period, with the company able to choose the preferred method.

Applications can be made from June 1 through the Ulsan Economic Promotion Agency, and detailed information can be found on the Ulsan City website or the announcement page of the Ulsan Economic Promotion Agency website.

An official from Ulsan City stated, “Due to production disruptions in manufacturing and other sectors in the first quarter caused by COVID-19, a significant decline in performance is expected from the second quarter onward. We hope that by providing funds, SMEs can overcome these difficult times.”

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