Chungbuk Provides 152 Billion KRW Loan Support to Local SMEs

by Jeong Ilwoong

Published 12 Jan.2021 13:08(KST)

[Asia Economy (Chungbuk) Reporter Jeong Il-woong] Chungbuk Province will provide loan support worth 152 billion KRW to local small and medium-sized enterprises (SMEs).

The province announced on the 12th that it will accept applications for the "First Round of SME Development Funds" from the 18th to the 22nd of this month. The funds are intended to alleviate financial difficulties and promote management stability for SMEs.

The support funds are allocated and operated as 40 billion KRW in facility funds for facility construction such as construction costs and production facilities, and 112 billion KRW in working capital for management stability including production and sales activities.

In particular, to assist companies facing financial difficulties due to the prolonged COVID-19 pandemic, the province plans to increase the scale of management stabilization funds from the previous 88 billion KRW to 200 billion KRW and reduce the loan interest rate of the SME Development Fund from 2.0% to 1.8%.

Additionally, a new 0.5% interest rate preferential benefit will be provided to excellent long-established companies and companies awarded the Export Tower (under 10 million USD) within the region. Furthermore, if production facilities are newly established after signing an investment agreement with the province this year, a 1.0% interest rate preference will be applied.

The support target is SMEs engaged in manufacturing, knowledge service industries, and other businesses with workplaces located in the Chungbuk area as of the application date.

SMEs in need of funding can apply by visiting the Chungbuk Business Promotion Agency, or by mail or online (e-Business Love Center). After receiving applications, the province will select eligible companies through qualification screening and ensure that fund support is provided promptly.