Sejong City Restructures Support Funds for SMEs... Expands Management Stabilization Fund by 20 Billion KRW

[Asia Economy (Sejong) Reporter Jeong Il-woong] Sejong City is reorganizing support funds for small and medium-sized enterprises (SMEs) to expand the scale of management stabilization funds that companies practically need.

The city announced on the 27th that it predicts an increase in the demand for operating funds from local SMEs due to COVID-19, and decided to reduce the relatively low-demand facility funds and increase the management stabilization funds by 8 billion KRW.

Specifically, among the SME development funds, startup funds will be reduced from 7 billion KRW to 6 billion KRW, competitiveness enhancement funds from 15 billion KRW to 11 billion KRW, and innovation funds from 15 billion KRW to 12 billion KRW, while management stabilization funds will be expanded from 12 billion KRW to 20 billion KRW.

Through this, the city expects to alleviate the actual interest burden on local SMEs struggling to secure operating funds due to the prolonged COVID-19 pandemic, contributing to the funding process.

SME development funds are supported by utilizing commercial bank funds to provide loans to companies and compensating the interest difference on the loans, thereby supporting the stable management of SMEs.

The funds are accepted year-round until depletion, and applying companies can receive consultation and guidance through the Corporate Innovation Growth Team at Sejong Technopark.

A city official said, “We hope that the expansion of management stabilization funds will provide practical help for local SMEs seeking a way out amid the prolonged COVID-19 difficulties,” and added, “The city will continue to devise various support measures for local SMEs.”

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