Busan City Launches 50 Billion Won Financial Support for Companies Affected by High Exchange Rates

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City will provide a total of 50 billion KRW to companies affected by the high exchange rate.

Busan City announced that, together with the Busan Credit Guarantee Foundation, it will provide a special fund of 50 billion KRW starting from the 24th to support import companies or small business owners who have suffered damage due to the rise in exchange rates caused by the worsening external economic situation.

The support targets are import direct damage companies or small business owners who can verify trade transactions within the last four months on the ‘Import Performance Certificate’ issued by the Korea International Trade Association.

Support will be provided up to a maximum of 200 million KRW per company for five years, with a one-year grace period and four years of equal principal repayment, and an interest rate differential of 2% will be supported.

For applications under 50 million KRW, support will be provided without loan limit screening regardless of personal credit scores, within a combined loan limit of 800 million KRW from the Credit Guarantee Foundation, Korea Technology Finance Corporation, and Korea Credit Guarantee Fund.

Even for applications between 50 million KRW and 200 million KRW, corporate credit rating application will be omitted. This is expected to be a relief for companies that find it difficult to receive additional loans because they have exceeded their loan limits, such as by deducting only the existing guarantee amount of the Credit Guarantee Foundation.

However, loans will be restricted for companies with overdue payments, tax delinquencies, closures, infringements on real estate rights (seizure, provisional seizure), credit recovery, personal rehabilitation, bankruptcy, and those registered in credit management information.

The application period is until June 30, 2023, or until the exchange rate stabilizes (below 1,300 KRW per USD), and applications can be made at all branches of Busan Bank.

Lee Joon-seung, Director of the Digital Economy Innovation Office of Busan City, said, “We hope that the support fund for companies affected by the high exchange rate will enhance the competitiveness of raw materials for import companies and help local small and medium-sized enterprises alleviate the burden caused by the high exchange rate.”

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