Ministry of SMEs and Startups Provides Interest Support for Small Business Owners Using Small and Medium Financial Institutions

Business Loans Between 5% and Less Than 7%
Supporting 400,000 People with a Total of 300 Billion KRW

Small business owners who have received business loans from the small and medium financial sector will receive interest support.

On the 10th, the Ministry of SMEs and Startups announced that it plans to provide a total of 300 billion KRW in interest support to about 400,000 people who have received business loans with interest rates between 5% and less than 7% from the small and medium financial sector.

[Image source=Yonhap News]

The interest support will be an average of 750,000 KRW per person (up to 1,500,000 KRW), and applications can be submitted year-round starting from the 18th. Once it is confirmed that interest has been paid for more than one year, the refund amount for one year will be paid in a lump sum at the upcoming quarter-end after the application.

Individual business owners can use both online and offline channels. Detailed information can be found on the websites of individual financial institutions, the Ministry of SMEs and Startups, and the Financial Services Commission. However, real estate rental, development, supply businesses, and financial businesses are excluded from the support.

Earlier, the National Assembly approved a budget of 300 billion KRW (from the SME Startup and Promotion Fund) for the interest support financial project for small business borrowers within the small and medium financial sector to alleviate the financial burden of small business owners struggling due to high interest rates and delayed economic recovery.

Accordingly, the Ministry of SMEs and Startups and the Financial Services Commission formed a joint task force with related organizations such as the Korea Credit Information Services under the Small and Medium Business Corporation, and regional associations and central associations of the small and medium financial sector to establish the necessary IT systems for execution. They have also prepared for implementation by distributing manuals that frontline financial institutions can refer to during execution.

The Ministry of SMEs and Startups and the Financial Services Commission plan to operate a 'Progress Monitoring Task Force' with related organizations after the application starts to ensure smooth execution and to promptly respond to any issues arising during the execution process.

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