Jungjingong Provides 400 Billion KRW Policy Funds to Support SME Liquidity
Overcoming Crisis for Export Companies
Interest Rate Reduction to Lower Financial Costs for SMEs
The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 24th that it will expand the supply of policy funds by 400 billion KRW to help small and medium-sized enterprises (SMEs) overcome liquidity crises.
Amid ongoing domestic and international economic uncertainties such as high interest rates, SBC has secured additional policy funds to provide financial support to SMEs and export companies facing funding difficulties. As a result, the total supply of policy funds this year has increased from the initially planned 5 trillion KRW to 5.4 trillion KRW.
The newly added policy funds include ▲ 100 billion KRW of Startup Foundation Support Funds for startups less than 7 years old ▲ 150 billion KRW of Export Company Globalization Funds supporting companies with export performance exceeding 100,000 USD ▲ 100 billion KRW of Innovation Growth Support Funds for SMEs over 7 years old ▲ 30 billion KRW of Accounts Receivable Factoring to help companies convert accounts receivable into cash and improve liquidity ▲ 20 billion KRW of Restructuring Exclusive Funds to support business normalization through restructuring of insolvent companies.
To alleviate the financial burden on SMEs caused by sustained high interest rates, the benchmark interest rate for policy funds in the third quarter was lowered by 0.3 percentage points from 3.2% to 2.9%. Additionally, support measures such as maturity extensions and repayment deferrals will be provided to reduce the repayment burden on existing loan companies. Applications for SBC policy funds can be submitted online through the SBC website.
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Kim Hak-do, Chairman of SBC, stated, "This is a time when prompt policy fund support is necessary to boost export companies' export vitality, strengthen the competitiveness of startups, and alleviate the financial burden on SMEs." He added, "We will continue to do our best to help SMEs overcome liquidity crises."
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