Daejeon City to Provide 430 Billion KRW in Support Funds for Small and Medium Enterprises This Year

Loan Interest Compensation and Low-Interest Loan Support
Plan to Accept Applications 3-4 Times Annually

Daejeon City announced on the 25th that it will provide 430 billion KRW in funding for the development of small and medium-sized enterprises (SMEs) this year.

The development funds are provided to reduce the financial burden on local SMEs and allow them to focus on their business activities. This is done by compensating for the difference in loan interest rates or by offering loans at low interest rates.

The development funds are divided into ‘Management Stabilization Funds (320 billion KRW)’ to support necessary business expenses such as labor and management costs, ‘Startup and Competitiveness Enhancement Project Funds (50 billion KRW)’ to support land acquisition and facility investment, and ‘Purchase-Conditioned Production Support Funds (60 billion KRW)’ to support product manufacturing such as purchasing parts and raw materials.

The ‘Management Stabilization Funds’ and ‘Startup and Competitiveness Enhancement Project Funds’ compensate part of the loan interest rate set by banks that have agreements with Daejeon City when companies take out loans. For example, if a company receives a loan with a bank interest rate of around 5%, Daejeon City compensates 2%, so the company effectively pays an interest rate of 3%.

The ‘Purchase-Conditioned Production Support Funds’ provide low-interest financial support for product manufacturing when local SMEs sign domestic or international supply contracts.

Applications for development funds can be submitted through the Daejeon Job and Economy Promotion Agency’s SME support site, ‘DaejeonBiz’. Daejeon City plans to allocate funds and accept applications 3 to 4 times a year depending on corporate demand and budget conditions.

For more detailed information on the development fund support, please refer to the announcement posted on the Daejeon City website or contact the Daejeon Job and Economy Promotion Agency for guidance.

Han Seon-hee, Director of the Strategic Business Promotion Office of Daejeon City, said, “We hope that the development fund support project will help alleviate the management difficulties of local SMEs.”

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