'Yoon Administration R&D Budget Cuts'... Gyeonggi-do Saves Crisis Companies with 'Emergency Support'

Gyeonggi Province will actively support policy funds and G-Fund investments for local companies facing project suspension due to the government's reduction of research and development (R&D) budgets.

Despite a 15% cut in the government's R&D budget, Gyeonggi Province announced on the 5th that it has increased its own R&D budget by 46%, emphasizing investment in the future, and will first push for emergency support for companies that have had to suspend government R&D projects.

Gyeonggi Provincial Government

Kim Dong-yeon, Governor of Gyeonggi Province, said at a meeting with businesspeople from Banwol Industrial Complex last month, "R&D budget support is an asset to prepare for the future, and even in the most difficult times, finance must play its role," adding, "If the government cannot do it, Gyeonggi Province will. We will fully support our technology companies to ease their difficulties and prepare for the future."

First, Gyeonggi Province will provide a combined product of special loans and special guarantees worth 30 billion KRW to companies that have been excluded from the government's low-interest loan program due to suspension of R&D projects. Unlike the existing policy fund loans operated with a 2% secondary interest subsidy and 1% guarantee fee, this support offers a 3% secondary interest subsidy and 0% guarantee fee, allowing companies to borrow funds at a minimum interest rate in the 2% range, which is cheaper than market rates, for up to 8 years.

Gyeonggi Province will also establish a future growth fund worth 20 billion KRW for local R&D technology companies and support companies that have suspended government R&D projects.

Additionally, Gyeonggi Province Economic Science Promotion Agency will set up a ‘Government R&D Project Suspension Company Support Center’ to identify the specific status and scale of local companies that have suspended R&D projects. They plan to collect and analyze the difficulties faced by these companies and develop support programs for researchers' salaries and testing and analysis costs necessary for product launches.

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