Jinju City to Support 50 Billion KRW in Loans in First Half and 25 Billion KRW in Second Half of the Year

Loan for companies with over 10% sales decline due to COVID-19 increased from 700 million to 1 billion KRW

Jinju City Hall Exterior View (Photo by Jinju City)

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Jinju City, Gyeongnam Province announced on the 28th that it will provide 75 billion KRW worth of small and medium-sized enterprise (SME) development funds to stabilize the management and alleviate the financial burden of local SMEs suffering from financial difficulties due to the prolonged COVID-19 pandemic.

The SME development fund support is a project where the city compensates part of the interest on bank loans to resolve management difficulties caused by COVID-19.

Following last year, this year as well, 75 billion KRW will be invested, with 50 billion KRW in loans in the first half and 25 billion KRW in the second half, along with 5 billion KRW in interest difference compensation.

The support targets are SMEs with headquarters and business sites in the city, registered factories, manufacturing industries with a manufacturing ratio of 30% or more, and craft product manufacturers.

The loan limit is up to 700 million KRW per company annually based on sales, with a repayment period of 4 years. Companies whose annual sales have decreased by 10% or more due to COVID-19 can receive up to 1 billion KRW.

Although SME loan interest rates are on a declining trend, the city will expand support by raising the general fund interest difference compensation rate by 0.5% from last year to 2% to reduce the interest burden on local SMEs due to COVID-19.

Preferred funds will be supported at 3% as in the previous year, securing a budget of 5 billion KRW by increasing the interest difference compensation by 1.7 billion KRW compared to last year's 3.3 billion KRW.

The scope of companies eligible for preferred fund support includes exporters within the last 4 years, and manufacturers related to bio, silk, agricultural product processing, aerospace industry, and ceramic industry. Companies whose sales have decreased by 10% or more compared to last year due to COVID-19 will receive preferred fund support (3% interest difference compensation).

Companies wishing to receive support should consult in advance at Jinju branches of nine banks including BNK Gyeongnam to check loan eligibility before applying.

A city official stated, “We expect this to help local SMEs struggling with exports and financing amid the regional economic crisis caused by COVID-19 to recover domestic demand and overcome the economic crisis, and we will continue to do our best to foster SMEs.”

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