Gas Corporation "Let's Revive Daegu and Gyeongbuk Economy"... 12.5 Billion KRW Support for SMEs through Win-Win Fund

[Asia Economy Reporter Kim Bo-kyung] It has been revealed that small and medium-sized enterprises (SMEs) and small business owners in the Daegu and Gyeongbuk regions, which were severely impacted by the novel coronavirus disease (COVID-19), received special support amounting to 12.5 billion KRW from the Korea Gas Corporation (KOGAS) win-win fund as of the end of last month.

In February, KOGAS, together with DGB Daegu Bank, became the first public enterprise to implement a total of 20 billion KRW 'win-win fund special support' for SMEs and small business owners in the Daegu and Gyeongbuk regions affected by COVID-19. According to the corporation on the 17th, as of the end of May, a total of 55 SME and small business sites benefited from 12.5 billion KRW, reducing their management burdens. For SMEs and small business owners affected by COVID-19, including companies with business sites in areas where confirmed cases occurred, interest rate reductions of up to 2.7% (basic 1.5% + additional 1.2%) were provided, with a limit of 500 million KRW per site.

Separately, KOGAS recently joined forces with IBK Industrial Bank of Korea to raise an additional 40 billion KRW loan fund to overcome the COVID-19 crisis. The two companies have jointly operated a win-win growth fund since 2015. With this additional increase, a total loan fund of 160 billion KRW has been established, offering a basic interest rate reduction of 0.92% within a loan limit of 500 million KRW for regional SMEs. Depending on corporate credit ratings, an additional reduction of up to 1.4% is applied, providing support of up to 2.32% in total. As of the end of last month, about 420 companies have benefited from support totaling 115.7 billion KRW.

On the 11th, Chae Hee-bong, President of Korea Gas Corporation (KOGAS) (left), signed a Memorandum of Understanding (MOU) with Kwon Young-jin, Mayor of Daegu, for the "Establishment of K-R&D Campus and Creation of Energy Industry Convergence Complex."

KOGAS is carrying out various win-win cooperation projects for local communities struggling due to the shock of COVID-19. On the 11th, it signed a memorandum of understanding (MOU) with Daegu City to establish a 'K-R&D Campus and Energy Industry Convergence Complex.' Both organizations agreed to actively cooperate to build an ecosystem for region-led energy industry development, create new growth engines, and accelerate the transition to clean energy. In particular, by creating a complex theme park that includes a natural gas and hydrogen research center, a promotional hall, and a local cultural center for citizens, it is expected to revitalize the local economy, which has been depressed by COVID-19. The hydrogen infrastructure projects, such as the construction of hydrogen charging stations promoted in line with the government’s energy transition policy and hydrogen economy activation, are also expected to gain momentum.

Furthermore, next year, the World Gas Conference (WGC), known as the 'Olympics of the gas industry,' will be held in Daegu. This event is the largest international gas industry event, attended by over 5,000 participants from more than 90 countries, held every three years over five days. This is the first time the WGC is held in South Korea and the third time in Asia after Japan and Malaysia. The conference will feature presentations and discussions on various topics related to gas exploration, production, transportation, and utilization, along with an exhibition held simultaneously. A KOGAS official stated, "We expect the creation of over 1,200 jobs and an economic effect of about 100 billion KRW in production and added value." As the host partner of the WGC, KOGAS plans to work closely with Daegu City and local governments to ensure the successful hosting of the event, contributing to the development of the domestic gas industry and revitalization of the regional economy.

Chae Hee-bong, President of KOGAS, said, "As a key member of the local community, we will continuously carry out regionally focused win-win cooperation projects that are essential to citizens, contributing to making Daegu a vibrant and warm city full of happiness." He added, "We will lead the realization of social value through various win-win cooperation projects with the region and do our best to contribute to public interest and community development."

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