Local Investment Promotion Subsidies Now Available to Companies That Restore Debt Ratios During Fiscal Year

Mid-sized Ombudsman, Daegu Region Small and Medium Enterprise Meeting

Jubong Park, Small and Medium Business Ombudsman (Vice Minister level).
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] The conditions for receiving local investment promotion subsidies are being improved from being based on the previous year's financial statement debt ratio to allowing applications even if the financial situation improves during the fiscal year.

Park Ju-bong, Small and Medium Business Ombudsman (vice minister level), announced on the 13th that he held the "8th Daegu Region S.O.S Talk Meeting" at EXCO in Buk-gu, Daegu.

S.O.S Talk is a meeting jointly held by the Small and Medium Business Ombudsman and the Small and Medium Business Corporation to resolve regulations and difficulties faced by small and medium enterprises in each region. On this day, a total of nine small and medium enterprises attended to discuss ways to resolve regulations and difficulties.

Company S, which produces permanent magnets for electric vehicle drive motors, said, "We hope to apply for local investment promotion subsidies for new facility investments, but the support conditions are based on the debt ratio in the previous year's financial statements," adding, "Because of this, even if the financial situation improves during this fiscal year, the timing for support is too late, causing investment delays."

In response, Ombudsman Park said, "We have agreed with the Ministry of Industry to improve the system so that companies that have improved their debt ratio through self-help efforts during the fiscal year can apply for subsidies through semi-annual or quarterly audits."

Company D, a steel re-rolling and slitting processing company, said, "We are experiencing management difficulties such as sales decline due to the spread of COVID-19 and economic downturn," adding, "As a result, it has become difficult to obtain loans from financial institutions, worsening the financial structure, and rising raw material prices are causing difficulties in procurement, creating a vicious cycle. Support from the Small and Medium Business Corporation and the government is needed."

Choi Hak-su, Head of the Innovation Growth Headquarters at the Small and Medium Business Corporation, said, "The Small and Medium Business Corporation is supporting companies whose financial situation has worsened due to COVID-19 through a separate screening system (IR method review system)," adding, "Furthermore, since rising raw material prices are a significant burden on small and medium enterprises, we will actively convey the need to introduce a 'delivery price linkage system' linked to raw material price increases to central government agencies."

In addition, participants raised various field difficulties such as △ protection of electric vehicle charger infrastructure operators, △ improvement of test certification standards for newly developed products, △ promotion of local investment, △ relaxation of policy fund support requirements, and △ easing restrictions on new guarantees for re-startup companies.

Ombudsman Park said, "I pay tribute to the representatives who are working hard in the economic field without giving up even in difficult times," adding, "We will listen carefully to the voices from the Daegu region and do our best to help small and medium enterprises overcome the current crisis and recover the economy through regulatory improvements."

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