Bucheon City Supports SMEs with 200 Billion KRW Fund... Establishes Emergency Liquidity Fund

Bucheon City Hall

[Asia Economy Reporter Park Hyesook] Bucheon City in Gyeonggi Province will provide 200 billion KRW in small and medium-sized enterprise (SME) development funds to alleviate financial difficulties and stabilize management for SMEs due to the prolonged COVID-19 pandemic.

In particular, the city plans to expand the special management stabilization fund by 80 billion KRW, raising the loan limit from 500 million KRW to 1 billion KRW and providing an additional 0.3% preferential interest rate to support companies affected by COVID-19.

Local manufacturing companies can receive interest rate subsidies ranging from 0.5% to 3.0% on the interest difference of loans conducted by banks partnered with Bucheon City through the SME development funds.

This year, Bucheon City will apply a downward adjustment to the interest subsidy rate range in response to the reduction in bank loan interest rates compared to the previous year, thereby providing relatively more interest subsidies to companies.

Meanwhile, the scope of industries eligible for SME special guarantee support has been expanded to all industries except gambling, and the credit rating criteria for low-credit companies have been lowered, enabling SMEs with technological capabilities but lacking collateral and credit to receive assistance.

Additionally, Bucheon has newly established the Bucheon-type special guarantee "Emergency Liquidity Fund," which supports up to 50 million KRW. It omits limit assessment based on sales and credit evaluation to quickly resolve temporary management difficulties of manufacturing companies.

Companies wishing to apply for special guarantee support can do so through the Bucheon branch of the Gyeonggi Credit Guarantee Foundation.

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