Incheon City Releases 1.045 Trillion Won in SME Development Funds... Including Tourism and Jeonse Bus Industries

Loan Support Up to 10 Billion KRW for Business Stabilization Funds
Accounts Receivable Insurance Support for Distribution Businesses Including Wholesale and Retail

Incheon Mayor Park Nam-chun is presiding over an emergency economic measures meeting due to the prolonged COVID-19 pandemic and holding a video conference with 100 small business owners. May 11, 2020.
[Photo by Incheon City]

[Asia Economy Reporter Park Hyesook] Incheon City will support loans for small and medium-sized enterprise (SME) development funds totaling 1.045 trillion KRW this year to stabilize the management of SMEs affected by the COVID-19 pandemic.

Newly added eligible industries include tourism and chartered bus services, which were directly hit by the spread of COVID-19, in addition to manufacturing, construction, and trade sectors.

In particular, this year, the loan limit for management stabilization funds will be significantly increased, with general funds available up to 1 billion KRW, and purpose-specific funds for employment creation, export companies, and overseas returnee companies available up to 10 billion KRW.

To support proactive investment after COVID-19, low-interest loans for factory purchase funds, categorized as structural advancement funds, will be provided up to 3 billion KRW.

Additionally, for SMEs with technological capabilities but lacking collateral or credit, making loans difficult, a 40 billion KRW scale cooperative guarantee support project will be implemented in collaboration with the Korea Technology Finance Corporation, and 50 billion KRW worth of support will be provided for accounts receivable insurance from the Korea Credit Guarantee Fund, which reduces the risk of default.

From this year, accounts receivable insurance will be supported across all insurable industries, including wholesale and retail distribution, actively serving as a safety net for the regional economy against economic downturns and chain bankruptcies caused by COVID-19.

The management stabilization funds among SME development funds compensate a portion of the interest incurred on bank loans, while structural advancement funds provide long-term low-interest loans for facility funds such as machinery and factories.

Byun Jooyoung, Head of the Job Economy Headquarters of Incheon City, stated, "Following last year, it is expected that the business environment for SMEs will not recover quickly due to COVID-19. We will do our best to expand support for SME development funds so that companies do not face difficulties in management."

Details on SME development fund support can be found on the Incheon City website, and applications can be submitted starting from the 11th through Incheon City's SME support system, 'BizOK.'

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