Gyeonggi-do Provides Up to 1 Billion KRW Loan Support to Social Economy Organizations

Gyeonggi Provincial Government

Gyeonggi Province will provide up to 1 billion KRW to support the stable management environment of social economy organizations with weak financial power.

Gyeonggi Province is recruiting companies to participate in the "Social Economy Organization Cooperative Asset Support Project" by September 1.

The support targets social economy organizations located in the province with more than one year of business performance, engaged in community revitalization, shared and collaborative projects such as real estate purchase and facility and equipment acquisition.

Luxury and entertainment businesses are excluded. However, preliminary social enterprises, preliminary village enterprises, and social venture companies can participate as part of a consortium.

The loan amount is up to 1 billion KRW per company, with a fixed interest rate of 2% per annum. The loan period can be chosen between 10 years (4 years grace period, 6 years equal installment repayment) and 15 years (5 years grace period, 10 years equal installment repayment). Up to 90% of the purchase cost is supported.

Gyeonggi Province will select supported companies within a total budget of 4 billion KRW. In particular, to ensure transparent business selection, loans will be executed only after financial institution loan screening for companies pre-screened by the "Gyeonggi Province Business Selection Review Committee."

Social economy organizations wishing to apply can receive preliminary consultation at Shinhan Bank Suwon Station Branch, the designated partner bank. Applications can be submitted via email on the dates posted in the announcement.

From May 24 to June 9, Gyeonggi Province invited bids for the project implementation agency and finally selected Shinhan Bank Co., Ltd. as the project executor through a selection committee.

For more details, please check the announcement on the Gyeonggi Province website or contact the Gyeonggi Province Social Innovation Economy Division.

Kim Hana, head of the Gyeonggi Province Social Innovation Economy Division, said, "We launched the cooperative asset support project reflecting the opinions of social economy organizations and voices from the field," adding, "We expect it to practically help stabilize management and enhance competitiveness of social economy organizations."

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