Gyeonggi-do Provides 20 Billion Won 'Emergency Support' to Companies Affected by Ukraine Crisis

Up to 500 Million KRW Loan per Company, 1.5% Interest Support Provided

Gyeonggi Provincial Government Northern Office

[Asia Economy Reporter La Young-cheol] Gyeonggi Province announced on the 15th that it will establish a new "Special Management Fund for Support of Damage from the Ukraine Crisis" worth a total of 20 billion KRW and will promptly support affected companies within the province.

The support targets small and medium-sized enterprises (SMEs) in the province that have been directly or indirectly affected by the Ukraine crisis.

The direct damage targets include ▲companies that have entered conflict areas (Russia or Ukraine) through local corporations (branches) or factory establishments ▲companies with export or delivery records to conflict areas since 2021 or those planning exports or deliveries ▲companies with import or purchase records from conflict areas since 2021 or those planning imports or purchases.

The indirect damage targets include ▲companies submitting damage confirmation certificates issued by government or public institutions ▲companies confirmed to have management difficulties related to the Ukraine crisis.

The loan limit for the special management fund is up to 500 million KRW per company, with a repayment condition of a 1-year grace period followed by equal installments over 2 years. The loan interest rate is 1.5% lower than the bank's set loan rate due to the province's secondary interest subsidy support.

In particular, this support is provided separately regardless of whether the existing SME development fund's working capital support is received. The evaluation criteria have been relaxed from 60 points to 50 points compared to the existing working capital, and the limit assessment has been expanded from one-third to one-half of the current sales.

Considering companies with insufficient collateral, the Gyeonggi Credit Guarantee Foundation will issue full guarantees (100% guarantee ratio) and apply a preferential fixed guarantee fee rate of 1.0%, thereby easing loan execution and financial cost burdens.

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