Jungjingong Actively Supports SME Policy Funds for COVID-19 Gathering Ban and Restricted Facility Operations

Emergency Management Stabilization Fund Support of 200 Billion Won

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 10th that it is allocating a separate 200 billion KRW in emergency management stabilization funds at a fixed interest rate of 1.9% to small and medium enterprises designated as gathering prohibition or restricted facilities due to the government's strengthened COVID-19 quarantine measures.

The support targets are small and medium enterprises with five or more regular employees in gathering prohibition and restricted facility industries, excluding entertainment bars and colatecs. The gathering prohibition industries include 11 types such as emotional pubs, hunting pochas, academies, karaoke rooms, and gyms, in accordance with social distancing measures, while the gathering restriction industries include nine types such as restaurants, cafes, PC rooms, study cafes, movie theaters, and lodging businesses.

To alleviate the management burden such as rent for small and medium enterprises affected by the prolonged COVID-19 pandemic, SBC applies a fixed interest rate of 1.9% to the relevant industries and has relaxed application requirements so that companies can apply even if they do not meet management difficulty conditions such as decreased sales. The policy fund loan period is a 2-year grace period followed by 3 years of installment repayment, with a loan limit of up to 1 billion KRW per company. Additionally, SBC has introduced non-face-to-face consultations and a COVID-19 high-pass screening method to quickly support affected companies.

Kim Hak-do, Chairman of SBC, stated, "We will actively strive to provide practical financial support such as rent or operating funds to small and medium enterprises suffering management difficulties due to the prolonged COVID-19 pandemic and gathering prohibition and restriction measures." For detailed information on applying for emergency management stabilization funds for COVID-19 affected companies, please inquire through the SBC website or one of the 32 regional headquarters nationwide.

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