Chungnam, Financial Support for Reviving Companies... Up to 500 Million KRW with 2% Interest Subsidy

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is stepping up financial support for local small and medium-sized rehabilitation companies.

The province announced on the 21st that it will promote ‘Interest Subsidy for Financial Support of Rehabilitation Companies’ in cooperation with the Korea Asset Management Corporation (KAMCO).

The two organizations will provide public support to rehabilitation companies that possess excellent technological capabilities and have a high possibility of normalization but are practically unable to raise funds due to market stigma.

This is a form of helping small and medium-sized enterprises in the province to restart their businesses through interest support at the provincial level in connection with government policies supporting rehabilitation companies.

Chungnam Province and KAMCO signed an agreement on the previous day based on these details. The agreement centers on providing loans worth 20 billion KRW to small and medium-sized enterprises located in Chungnam that have been approved for rehabilitation procedures by both organizations.

The support period will start next month and continue until funds are exhausted. The province will subsidize 2% interest up to a limit of 500 million KRW per company, and any excess will be subject to KAMCO’s variable loan interest rate.

The province expects that financial support for rehabilitation companies will enable local rehabilitation companies to receive low-interest financial benefits and lay the foundation for their recovery.

Other detailed information regarding financial support for rehabilitation companies can be found in the small and medium enterprise development fund announcement to be posted on the provincial website in early next month.

Information about KAMCO’s financial and corporate support programs can be accessed through the online corporate information platform ‘OnGieop’.

Meanwhile, 191 rehabilitation companies have been recorded in the province over the past five years, and KAMCO has been implementing financial support for rehabilitation companies (DIP) since 2020, providing a total of 5.2 billion KRW to five companies located in Chungnam to date.

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