Chungnam, Policy Finance and Technical Support for Special Zones and Specialized Complex Companies

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province will provide policy financing and technical support to resident companies in the Small but Strong R&D Special Zone, Regulatory Free Zone, and the materials, parts, and equipment complex.

On the 18th, the province announced that it signed a business agreement with Cheonan City, Asan City, the Small and Medium Business Corporation, and the Korea Automotive Technology Institute regarding "Support for Special Zone and Specialized Complex Companies to Foster Chungnam Regional Specialized Industries."

The agreement was made with the core purpose of supporting policy financing so that companies residing in the special zones and specialized complexes do not face difficulties in research and development (R&D) and facility investment linkage due to barriers at commercial banks.

According to the agreement, the Small and Medium Business Corporation will support policy financing to foster regional specialized industries. By securing a separate budget of 45 billion KRW (15 billion KRW annually) until 2023, it will provide funds to related companies within the special zones and specialized complexes by applying the Small and Medium Business Corporation’s policy fund base interest rate of 2.15% (variable rate).

The financial support projects include ▲startup funds ▲new growth funds ▲investment-financing complex finance ▲business conversion funds.

Additionally, facility funds up to 7 billion KRW and working capital up to 500 million KRW will be supported within a loan interest rate range of 1.85% to 2.65%.

When companies related to the special zones and specialized complexes apply for the Small and Medium Business Corporation’s own projects such as ▲technology commercialization capacity enhancement ▲innovation vouchers ▲Youth Academy ▲export vouchers, preferential additional points will be given to support up to 100 million KRW.

The Korea Automotive Technology Institute will assist early-stage companies in the R&D field by providing technical support, experimental certification, and equipment rental using the institute’s personnel and equipment to help generate corporate sales.

Through the agreement, the province plans to form a working-level council involving local governments, the Chungnam Regional Small and Medium Business Administration, the Small and Medium Business Corporation, the Korea Automotive Technology Institute, and Industrial Bank of Korea to discuss company support methods and support amounts.

A provincial official stated, “The agreement will serve as a solid foundation by combining the efforts of the province and related organizations to help early-stage companies grow into global enterprises. The province will spare no support to help resident companies in the special zones and specialized complexes take a leap forward.”

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