Suwon City to Support 180 Billion KRW This Year Including Special Guarantees for SMEs

The city of Suwon in Gyeonggi Province will provide 180 billion KRW annually to support small and medium-sized enterprises (SMEs) struggling with management difficulties due to the economic downturn.

On the 20th, Suwon City announced that this year it plans to support a total of 180 billion KRW in SME financial aid divided into five sectors: ▲100 billion KRW for the Companion Support Project ▲40 billion KRW for SME Development Fund Loan Support ▲13 billion KRW for the Win-Win Growth Cooperation Project ▲21.4 billion KRW for SME Special Guarantee ▲2 billion KRW for Content Company Special Guarantee.

First, Suwon City will carry out the Companion Support Project, the first of its kind nationwide, in cooperation with banks and guarantee institutions to lower the loan interest rates applied to local SMEs. Additionally, it will provide a 2% interest rate reduction and a 1.2% annual waiver on guarantee fees. The total loan scale is 100 billion KRW, with a maximum loan amount of 500 million KRW per company. Suwon City plans to support a total of 300 billion KRW over the next three years.

Suwon City Hall

Suwon City has also signed loan agreements with six commercial banks to partially compensate for loan interest rates through the ‘SME Development Fund Loan Support Project.’

The support targets manufacturing, knowledge-based industries, cultural industries, and social enterprises, with a loan scale of up to 500 million KRW per company. The city supports 2-3% of the loan interest rate.

In addition, in cooperation with IBK Industrial Bank, Suwon operates the ‘Win-Win Growth Cooperation Project’ to provide operating fund loans and interest reductions to local SMEs and small business owners. It also runs the ‘SME and Content Company Special Guarantee’ program, which helps SMEs and content companies with insufficient credit or collateral capacity obtain guarantees from the Gyeonggi Credit Guarantee Foundation under relaxed criteria.

A Suwon City official said, "We hope the SME Support Fund Project will be a source of strength for SMEs struggling due to the economic downturn," adding, "We will continue to actively support companies so that they can prepare for a new leap forward without wavering amid the crisis."

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