Mid-sized Ombudsman: "Eligibility for Local Investment Promotion Subsidy to Expand from Next Year"

‘Previous Fiscal Year’ → Revised Notice for ‘Half-Year or Quarter’
Subsidy Application Possible Even if Debt Ratio on Financial Statements Is Below 500%

Jubong Park, Small and Medium Business Ombudsman. / Photo by Dongju Yoon doso7@

[Asia Economy Reporter Kim Heeyoon] Starting next year, the eligibility criteria for applying for the 'Local Investment Promotion Subsidy,' a support fund to encourage corporate local investment, will be expanded.

On the 13th, Park Joobong, Small and Medium Business Ombudsman, announced that in consultation with the Ministry of Trade, Industry and Energy, regulations have been improved to allow companies that have restored their debt ratio during the fiscal year to apply for the subsidy. Until now, the subsidy payment condition was set to a debt ratio of less than 500% in the previous fiscal year.

Earlier, at a meeting held in July, Company A, an electric vehicle parts manufacturer based in Daegu, expressed difficulties, stating that despite innovatively improving its financial structure under this regulation, it could not receive the subsidy for one year.

In response, Ombudsman Park judged that the current system could be a burden for companies seeking to improve their financial structure and invest, proposed system improvements, and the Ministry of Trade, Industry and Energy agreed with the intent and began a full-scale revision of the official notice.

As a result, the regulation has been improved to allow subsidy applications if the debt ratio on the financial statements is less than 500%, even if it is a semi-annual or quarterly financial statement. This system will be implemented from January 1 next year.

Ombudsman Park said, “From next year, companies that have restored their debt ratio during the fiscal year will be able to apply for subsidies, which is expected to help secure liquidity for those companies.”

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