The Automotive Industry Embraces an 'Eco-Friendly Wave'... Chungnam Provides Targeted Support to Struggling Car Parts Sector

[Asia Economy (Hongseong) Reporter Jeong Il-woong] As the management difficulties of completed car manufacturers, shutdowns, and eco-friendly vehicles become the trend, pinpoint support is being provided for automobile parts companies in the Chungnam region facing management challenges.

According to Chungnam Province on the 13th, the province supported 14 billion KRW in small and medium enterprise development funds to 61 parts companies in the area by the end of last month. Furthermore, until the end of this year, the province plans to provide support such as deferring repayments for up to six months and extending maturities for companies whose principal repayment period is due.

Additionally, the fund support processing period has been shortened from two weeks to 3?7 days to respond to urgent funding needs, and the guarantee fees for small business funds have been eased from 1% to 0.8%, and to 0.5% for vulnerable small business owners.

In this process, Company A in Asan, selected for Hyundai and Kia's electric vehicle project this year, was able to establish production facilities without disruption by receiving 500 million KRW in small and medium enterprise development funds.

Company B, which was blocked from bank loans due to insufficient collateral, received 50 million KRW in small business funds with benefits such as the province covering 1.7% interest and reducing guarantee fees, thus escaping financial pressure.

Besides financial support, the province selected 17 parts companies to participate in the smart factory construction project and is supporting the automobile parts industry facing crisis by conducting product design and production process advancement, as well as professional workforce training.

In particular, under the paradigm shift to eco-friendly vehicles, a preemptive response package project to stabilize employment is being promoted, with a plan to invest a total of 40.9 billion KRW in the industry by 2025.

Meanwhile, a survey conducted on 16 out of 46 Ssangyong Motor parts supply companies in the province from January to May found that 10 companies suffered economic losses of 42.6 billion KRW due to shutdowns and reduced volume.

These companies also requested the province for ▲support to secure liquidity such as management funds ▲relaxation of qualification requirements for fund support ▲shortening of fund support processing periods ▲support for product development funds.

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