Gwangju City Releases 220 Billion Won in SME Management Stabilization Funds

Support for Companies Struggling Due to COVID-19... Expanded by 20 Billion Won Compared to Last Year

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 21st that it will provide 220 billion KRW in management stabilization funds to support the management stability and alleviate financial difficulties of small and medium-sized enterprises (SMEs) struggling due to the spread of COVID-19. This amount is 20 billion KRW more than last year.

In particular, to maximize effectiveness, 160 billion KRW scheduled for the first half of the year will begin support before the Lunar New Year holiday. Additionally, 60 billion KRW will be provided in the second half of the year.

The support targets are SMEs with business sites in Gwangju, including manufacturers with a manufacturing employment rate of 30% or more, manufacturing-related service companies, knowledge industry center construction businesses, and knowledge service companies under the “Ordinance on the Establishment and Operation of the Special Account for the Promotion Fund for Small and Medium Enterprises in Gwangju Metropolitan City.”

The support conditions are a two-year grace period with lump-sum repayment, with a limit of 300 million KRW per company. PRE (Premium) and luxury strong SMEs, excellent job-creating companies, Gwangju-type job companies, outstanding SMEs, and companies excelling in industrial safety and health can receive support up to 500 million KRW.

Along with this, Gwangju City will compensate for a 2% interest rate difference using city funds, and PRE, luxury strong SMEs, excellent job-creating companies, Gwangju-type job companies, outstanding SMEs, and companies excelling in industrial safety and health will receive an additional 1% support.

Applications for the first half will be accepted from the 4th of next month until funds are exhausted. SMEs wishing to apply can submit an online application through the Gwangju Economic and Employment Promotion Agency website, then visit or mail the loan application form, business plan, and recent financial statements to the agency.

Detailed information will be available on the Gwangju City website starting from the 22nd.

Gwangju City will select the final support recipients after document review and evaluation of the applying companies. Selected companies can apply for loans at 14 banks, including Gwangju Bank.

Gwangju City expects that the expanded management stabilization funds will help SMEs facing management difficulties due to COVID-19.

Son Hang-hwan, Director of Corporate Development at the city, said, “This year’s management stabilization funds have been increased compared to last year and the support period has been advanced to before the Lunar New Year holiday, considering the COVID-19 economic crisis. We hope this will help alleviate the financial difficulties of local SMEs struggling due to the COVID-19 economic crisis.”

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