Yongin City to Support 55 Billion KRW for SME Management Stability Funds This Year

100 Billion Loan via New Product Special Guarantee Investment
Also Supporting 45 Billion Loan through Secondary Interest Subsidy

Yongin City, Gyeonggi Province, announced on the 19th that it will provide 55 billion KRW in working capital to local small and medium-sized enterprises (SMEs) through this year's special guarantee support and secondary interest subsidy projects.

First, the city will invest 1 billion KRW in the Gyeonggi Credit Guarantee Foundation's special guarantee project to support SMEs experiencing temporary financial difficulties due to lack of collateral or low credit. With this investment, special guarantee recommendations up to 10 billion KRW, which is 10 times the investment amount, will be possible. The city plans to allocate 60% of the total amount to manufacturing guarantees and 40% to non-manufacturing guarantees. The maximum guarantee amount per company is 300 million KRW.

Along with this, the city will also implement a "Secondary Interest Subsidy Support Project" to alleviate the interest burden on SMEs struggling with high loan interest rates. Eligible companies for the secondary interest subsidy include manufacturing SMEs, venture companies, certain knowledge service industries, and SMEs engaged in technological and managerial innovation, with a total loan amount of 45 billion KRW.

To this end, when companies take out working capital loans from financial institutions that have agreements with the city, the city will support 2% annual interest for three years. The loan limit for secondary interest subsidy support per company is 300 million KRW. Female-owned companies or excellent companies in Yongin City (including those with outstanding job creation) will receive a 2.5% annual interest subsidy, and disaster-affected companies will receive up to a 3% annual interest subsidy.

The financial institutions participating in the secondary interest subsidy support agreement include Kookmin Bank, Industrial Bank of Korea, NongHyup Bank, Shinhan Bank, Woori Bank, Hana Bank, and SC First Bank. Companies wishing to apply should first confirm loan eligibility at the bank and then apply either at the bank or at the Yongin City Corporate Support Division.

A Yongin City official stated, "We have prepared various financial support measures to ease the financial burden on local SMEs facing difficulties due to recent raw material price increases and high interest rates," adding, "We will continue to devise diverse support measures for local SMEs in the future."

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