Daegu City Increases Business Stability Fund Corporate Guarantee to 1.1 Trillion Won

Decided at the 3rd Emergency Economic Measures Meeting on the 21st... Three-Month Water Charges Discount for Industrial Complex Resident Companies

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] On the 21st, Daegu City held the 3rd Emergency Economic Countermeasures Meeting at City Hall and decided to provide an additional corporate guarantee of up to 100 billion KRW to local companies struggling due to the novel coronavirus infection (COVID-19).

At the previous 2nd Emergency Economic Countermeasures Meeting, Daegu City decided to provide an additional 1 trillion KRW in business stabilization funds, but it has been pointed out that companies lacking their own collateral capacity find it difficult to secure actual financing.

With this decision, it is expected that up to 400 companies will benefit from additional guarantees. If Daegu City invests up to 5 billion KRW, the Korea Technology Finance Corporation will provide guarantees of up to 1 billion KRW to local companies seeking to use Daegu City's business stabilization funds.

Separately, the water bills for June to August for companies located in industrial complexes and manufacturing companies registered outside the industrial complexes will be fully waived, and the May water bills for manufacturing companies in industrial complexes and registered factories will be deferred for six months (July to December) with exemption from additional charges. Through this measure, 11,840 companies are expected to receive a total reduction benefit of 13 billion KRW.

Additionally, a 'Mid-sized Enterprise Financial Support Council' will be formed to explore practical financial support measures for mid-sized enterprises. Various COVID-19 financial support measures implemented so far have focused on small business owners and small and medium-sized enterprises, leading to opinions from the local economic community that mid-sized enterprises are relatively in a support blind spot.

The Emergency Economic Countermeasures Meeting also designated the 25th of every month, the payday for many workers, as 'Good Consumer Day' and set the week including the 25th as 'Good Consumption Week' to actively promote the good consumer movement.

Daegu Mayor Kwon Young-jin emphasized, "Realistically, legal, institutional, and financial authority is concentrated in the central government, so there are limits to local governments implementing regional economic measures," but added, "We will devote all of Daegu City's capabilities to ensure that even one more company survives and even one more job is protected."

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