Gwangju City Provides Loan Support for Structural Improvement Funds to Local Small and Medium Distribution Companies

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 25th that it will provide loan support totaling 2.5 billion KRW for small and medium-sized distribution companies struggling due to the prolonged COVID-19 pandemic and economic recession.

The fund support includes ▲ facility improvement funds for purposes such as market redevelopment projects, construction of joint warehouses, and store facility improvement projects, with a maximum of 100 million KRW per company (3-year grace period, 5-year equal installment repayment) ▲ and working capital loans up to 50 million KRW (1-year grace period, 2-year equal installment repayment) for business stabilization and store operation.

The loan interest rate is 1.27% per annum (as of Q1 2021, variable rate) and is adjusted quarterly according to changes in the Ministry of Strategy and Finance’s public fund management fund loan interest rate.

The support target is small and medium-sized distribution companies engaged in wholesale and retail businesses in Gwangju City that have been registered for business and operating for more than six months.

However, those with bad credit, those who are temporarily closed or out of business, and those requesting less than 10 million KRW are excluded.

Applications can be submitted in person to the Gwangju Economic and Employment Promotion Agency by referring to the notices in the information resources section on the agency’s website. Applications will be accepted from the 2nd of next month until funds are exhausted.

Within 10 days after application submission, after screening, applicants will be notified of the support decision and can receive loans through credit rating assessments at all branches of commercial banks (Kookmin Bank, Gwangju Bank, Industrial Bank of Korea, NongHyup Bank (excluding local NongHyup), Korea Development Bank, Shinhan Bank, Woori Bank, Citibank, Hana Bank).

Jung Young-hwa, head of the City’s Livelihood Economy Division, said, “Over the past four years, we have provided loan support of 6.5 billion KRW to 65 companies,” adding, “We hope that the low-interest loan support will help local small and medium-sized distribution companies struggling due to the prolonged COVID-19 pandemic.”

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