Chungnam Provides 650 Billion KRW Support for 'Small and Medium Enterprise Management Stability'

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province will support a budget of 650 billion KRW this year for small and medium-sized enterprise (SME) development funds. This is an increase of 55 billion KRW compared to last year.

According to the province on the 4th, this year's SME development funds are organized with a focus on "selection and concentration," reducing the scale of some funds with low support performance due to decreased demand over the past five years, and increasing the scale of funds with high support performance.

The support amounts by sector are divided as follows: ▲ Startup funds 20 billion KRW ▲ Competitiveness enhancement funds 35 billion KRW ▲ Innovation-type funds 110 billion KRW ▲ Corporate rehabilitation funds 5 billion KRW ▲ Manufacturing business stability funds 120 billion KRW ▲ Technology innovation-type business stability funds 70 billion KRW ▲ Social economy funds 5 billion KRW ▲ Venture and promising startup funds 5 billion KRW ▲ Small business funds 280 billion KRW.

Specifically, the province will increase the manufacturing business stability funds by 10 billion KRW from 110 billion KRW last year to 120 billion KRW this year to help stabilize the management of general manufacturing companies.

Also, reflecting the increasing demand, the technology innovation-type business stability funds for innovative companies such as venture companies with excellent technology but insufficient collateral will be increased by 10 billion KRW compared to last year.

In particular, to assist small business owners and self-employed individuals facing management difficulties due to the prolonged COVID-19 pandemic, the province emphasizes that small business funds will be increased by 105 billion KRW compared to last year. These funds will be used to compensate interest at a rate of 1.7% to 2.2% when loans are taken out with a guarantee certificate issued through the Chungnam Credit Guarantee Foundation.

Additionally, the province established a new SME development fund support system last October, allowing companies to apply for funds without directly visiting the relevant city/county or bank. The province also explained that various information necessary for fund financing can be checked online.

Through this, five types of funds?startup, competitiveness, innovation-type, corporate rehabilitation, and manufacturing business stability funds?can be applied for non-face-to-face (online) through the fund support system.

However, technology innovation-type business stability funds, venture and promising startup funds, and social economy funds, which require a guarantee certificate for loans, must be submitted directly to the Korea Credit Guarantee Fund or the Korea Technology Finance Corporation, and small business funds must be submitted directly to the Chungnam Credit Guarantee Foundation.

For other detailed information regarding this year's SME development fund support, please refer to the fund support system or the province's homepage.

A provincial official said, "We have significantly increased the budget to support SMEs, small business owners, and self-employed individuals facing management difficulties due to COVID-19," and added, "We ask for the active interest and participation of SMEs and small business owners in the province."

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