Chungnam, Interest Support and Grace Period Extension for SME Development Funds

[Asia Economy (Naepo) Reporter Jeong Il-woong] Chungnam Province announced on the 21st that it will support the interest on the ‘Small and Medium Business Development Fund’ for local small and medium-sized enterprises (SMEs) and small business owners, while also deferring principal repayments (maturity extension).

This measure aims to secure cash liquidity for SMEs and small business owners struggling due to the prolonged COVID-19 pandemic and to reduce the burden of loan repayments.

A total of 4,405 companies in the region are using the Small and Medium Business Development Fund, and the total principal amount due for repayment at maturity is estimated to be 421.6 billion KRW.

Specifically, 1,437 SMEs need to repay 396.1 billion KRW, and 2,968 small business owners need to repay 25.5 billion KRW.

Accordingly, the province plans to support 0.4% to 1.0% of the interest burden for companies whose principal repayments are due between last month and December 31 of this year, until March 30 of next year. The eligible funds include those for start-ups, competitiveness enhancement, innovation, corporate rehabilitation and distribution, manufacturing, technological innovation, and small business funds.

In addition, maturity extension applications can be made through the lending bank, and in the case of guaranteed loans, applications must be submitted to the lending bank via the relevant guarantee institution.

For more details, refer to the province’s website or contact the province’s Small and Medium Business Division, the local city or county economic department, or the corporate support division.

Kim Seok-pil, Director of the Province’s Economic Office, said, “The local economy is shrinking due to the prolonged COVID-19 pandemic,” and added, “The province is expanding support for companies with maturing Small and Medium Business Development Fund loans to alleviate the management difficulties of local SMEs and small business owners.”

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