Gangwon-do Expands 'SME Facility Investment Funds'... 250 Billion Won Allocated

Within 75% of the supply amount, 4-year grace period and 5-year equal repayment over 9 years

[Asia Economy Reporter La Young-cheol] Gangwon Province is adjusting funds for fostering small and medium-sized enterprises (SMEs) and allocating an additional 15 billion KRW to startup and competitiveness enhancement funds.

According to the province on the 10th, the 'Startup and Competitiveness Enhancement Fund' is a budget focused on supporting facility investments for SMEs, including land acquisition, construction costs, purchase of machinery and equipment, production facilities, testing and inspection equipment, and logistics facilities.

The province initially allocated 250 billion KRW for SME fostering funds this year, considering last year's fund demand, divided into 170 billion KRW for management stabilization funds, 50 billion KRW for startup and competitiveness enhancement funds, and 30 billion KRW for special purpose funds.

However, as 90% of the 'Startup and Competitiveness Enhancement Fund' budget was exhausted early in early July, after urgent consultations with related organizations, 15 billion KRW from the management stabilization fund allocation was converted and expanded into the startup and competitiveness enhancement fund.

The loan limit is within 75% of the required supply value, with a loan period of 9 years total, consisting of a 4-year grace period and 5 years of equal repayment. Companies confirmed as support targets can receive an annual 2% interest subsidy until the loan is fully repaid.

The interest subsidy means that the province compensates financial institutions on behalf of companies for the supported interest rate (2%) portion of the companies' loan interest.

Companies wishing to apply for funding can submit applications online or in person through the economic departments of the city or county where their business is located starting from today.

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