Wildfire-Affected SMEs Receive Up to 1 Billion KRW Funding Support... Expansion of Loan Eligibility for Small Business Owners

Kibo, Guarantee Ratio Raised to 90%... Guarantee Fee Rate 0.1%
Sojinkong Up to 70 Million KRW Small Business Management Stabilization Fund

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government will provide low-interest loan support to stabilize the management of small and medium-sized enterprises (SMEs) and small business owners affected by wildfires.

The Ministry of SMEs and Startups announced on the 6th a plan to support policy funds and credit guarantees for SMEs and small business owners damaged by wildfires, following the declaration of Gyeongsangbuk-do Uljin and Gangwon-do Samcheok areas as special disaster zones.

The Ministry will urgently provide policy financial support as follows for disaster-affected SMEs and small business owners who suffered damage to factories, stores, and facilities due to wildfires in the special disaster zones.

First, for wildfire-affected SMEs, the Small and Medium Business Corporation will provide disaster SME support funds up to 1 billion KRW per company at a low fixed interest rate of 1.9%, with a 2-year grace period and repayment over 3 years in installments.

In addition, technology guarantee support through the Korea Technology Finance Corporation will increase the guarantee ratio from 85% to 90%, reduce the guarantee fee rate to a fixed 0.1%, and offer preferential support. The guarantee limit will be expanded to up to 500 million KRW for working capital and within the required amount for facility funds.

[Image source=Yonhap News]

For small business owners affected by wildfires, the Small Enterprise and Market Service will provide emergency management stabilization funds up to 70 million KRW per company at a fixed low interest rate of 2.0%, with a 2-year grace period and repayment over 3 years in installments. The scope of loan recipients will be expanded to include some previously excluded industries such as tobacco wholesale and fur product wholesale.

Guarantee support through regional credit guarantee foundations will increase the guarantee ratio from 85% to 100%, reduce the guarantee fee rate to a fixed 0.1%, and offer preferential support, with a guarantee limit of up to 200 million KRW regardless of the existing guarantee scale.

Each policy financial institution plans to support full maturity extensions for existing loans and guarantees of affected companies to help resolve management difficulties of SMEs and small business owners.

A Ministry of SMEs and Startups official stated, "Disaster-affected SMEs and small business owners can receive necessary support after submitting a disaster SME confirmation certificate issued by the relevant local government to the support institutions following consultation and evaluation," adding, "We will continuously monitor the damage and management difficulties of SMEs and small business owners and consider additional support measures if necessary."

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