Changwon City Provides Foundation to Overcome Management Difficulties with a Total Scale of 360 Billion Won

300 Billion KRW Each for Manufacturing and Non-Manufacturing Sectors... Additional 60 Billion KRW Emergency Funds Support

Changwon Mayor Heo Seong-mu is visiting a local company to listen to their difficulties and concerns. (Photo by Changwon City)

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] Changwon City in Gyeongnam announced on the 8th that it will provide an additional 60 billion KRW in emergency funds to local businesses struggling due to the resurgence of the novel coronavirus infection (COVID-19) to help overcome management difficulties.

The fund distribution will begin on the 14th. This year, the city raised 170 billion KRW in emergency funds, supporting a total of 1.428 companies in the manufacturing sector (760 companies) and non-manufacturing sector (668 companies) with a total of 300 billion KRW, including 130 billion KRW in general funds.

However, due to steady demand for funds, as of September, about 87% of the planned amount for this year, approximately 262 billion KRW, has been disbursed, raising the possibility of early depletion.

Accordingly, with the resurgence of COVID-19 and natural disasters such as typhoons exacerbating difficulties for companies, the city has raised an additional 60 billion KRW. A total of 360 billion KRW will be supported to companies this year, and it is expected that about 400 companies will benefit.

The emergency funds of 60 billion KRW will be equally divided, with 30 billion KRW for manufacturing and the same amount for non-manufacturing. The limit per company is 300 million KRW for manufacturing and 100 million KRW for non-manufacturing, with an interest subsidy rate of 3.5%, and a two-year grace period with lump-sum repayment.

Details of the support can be found on the city’s website under the public notices section starting from the 11th. Since this is a bank cooperative loan rather than a direct loan from the city, applicants must consult with the lending bank before applying.

Heo Seong-mu, Mayor of Changwon City, said, “We plan to actively support companies, the core of the local economy and industry, and non-manufacturing companies that are making sacrifices to prevent the resurgence of COVID-19, so that they can prepare for a new leap forward without wavering amid the crisis.”

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