Gyeongnam Province Invests 3.1 Billion KRW in SMEs and Startups to Create a Business-Friendly Gyeongnam

The formation ceremony of the 'Reverse Innovation Investment Association' held at the Gyeongnam Technopark headquarters.

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongnam Province is creating an environment for small and medium-sized enterprises (SMEs) struggling due to the novel coronavirus infection (COVID-19) to make a comeback.

On the 11th, Gyeongnam Province announced that it will invest 3.15 billion KRW in eight projects across three areas, including SME management stabilization and startup investment support.

To stabilize SME management, 500 million KRW will be provided for the "SME Accounts Receivable Insurance Premium Support Project." This is to reduce the risk of default on accounts receivable from goods or services provided during COVID-19.

SMEs with their main office and business site in the province can receive support for 50% of the accounts receivable insurance premium, up to 3 million KRW per company. To ease logistics costs for small manufacturing companies, 54 million KRW will be invested in the export logistics cost support project.

This support is targeted at small manufacturing companies with headquarters or factories in the province whose export performance last year was 50 million USD or less, providing up to 2 million KRW per company.

Following the establishment of two startup investment funds (worth 25 billion KRW) last year, a 30 billion KRW Southeast region New Deal Innovation Startup Support Fund will also be created to revitalize the startup ecosystem in the Southeast region.

The fund plans to invest more than 60% in startups or small and venture companies in the Southeast region, focusing on new industry companies such as non-face-to-face and digital sectors.

To strengthen startup companies' investment attraction capabilities, 100 million KRW will be invested, and 200 million KRW in commercialization funds will be provided to excellent companies under three years old that succeed in attracting investment.

Twenty billion KRW will also be invested in the Gyeongnam design-led manufacturing innovation support project. This project offers customized support throughout the entire product production cycle for SMEs in the province, including design consulting, company-specific tailored support, promotion and marketing, and education to raise design awareness.

For SMEs lacking marketing capabilities, 200 million KRW will be provided for the non-face-to-face video design production support project, and 100 million KRW will be allocated to the local designer capability enhancement support project, which supports design development for small business owners or SMEs aiming to start a business or develop designs utilizing regional characteristics.

Kim Heeyong, Director of the Job and Economy Bureau of Gyeongnam Province, said, “It is very important to create an environment where SMEs, the backbone of the economy, can grow and make a comeback,” adding, “We will make Gyeongnam a business-friendly province through various support policies.”

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