Gangwon-do, "Policy Funds Expanded for 'Investment in Small and Medium Enterprises'"

SME Development Fund 350 Billion Won... 'Childcare Flexible Work Support Fund' 2 Billion Won
Loan Repayment Deferral Up to 6 Months for Loans Due in the First Half of the Year
Special Purpose Fund Loans with 800 Million to 3 Billion Won Limit and 1.5% Fixed Interest Rate Over 5 Years

Gangwon Provincial Government

[Asia Economy Reporter Ra Young-cheol] Gangwon Province is focusing this year's policy fund benefits on expanding investment in small and medium-sized enterprises (SMEs).

Gangwon Province announced on the 5th, "To stabilize management and establish a growth foundation for SMEs in the province, we have confirmed a small and medium enterprise development fund of 350 billion KRW, an increase of 80 billion KRW compared to last year."

The fund is divided into 255 billion KRW for management stabilization, 70 billion KRW for startup and competitiveness enhancement, and 25 billion KRW for special purpose funds.

The management stabilization fund supports interest subsidies of 2-3% for 4 years with a limit of 500 million to 1.6 billion KRW for corporate management. The startup and competitiveness enhancement fund provides a 2% interest subsidy for facility funds with a limit of 1.5 billion KRW over 9 years.

Special purpose funds for working capital or facilities with specific objectives are loaned at a fixed interest rate of 1.5% with a limit of 800 million to 3 billion KRW over 5 years.

Among these, a new category called 'Childcare Flexible Work Support Fund' has been established with an allocation of 2 billion KRW. Companies utilizing childcare-related telecommuting or flexible working hours can apply for short-term (1 year) loans up to 300 million KRW to promote a culture of work-life balance.

Additionally, the criteria for permanent employees in wholesale and retail trade, food service, and accommodation industries have been relaxed from '10 or more employees' to '5 or more employees.' This adjustment allows businesses with 5 to 9 employees in these sectors to benefit, addressing previous blind spots.

The repayment grace period has also been extended. Loan applications with repayment due dates in the first half of this year will be reviewed to allow a maximum repayment deferral of up to 6 months.

Meanwhile, the province has improved the 'Gangwon Province Low-Credit SME Agreement Guarantee' by increasing the total guarantee limit from 200 million KRW to 400 million KRW for technologically capable companies (with a technology credit rating of T6 or higher).

Choi Ki-yong, Director of the Gangwon Province Economic Bureau, stated, "We plan to increase the SME development fund annually considering the demand for funds, and we will continue to strive to stabilize management and establish a growth foundation for SMEs in the province."

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