Jeonnam Province to Support SMEs Facing Financial Difficulties Amid Economic Downturn

Jeollanam-do to Provide 450 Billion KRW in Policy Loans
for Rent, Labor Costs, and More

Jeonnam Provincial Office building exterior.

Jeollanam-do announced on the 12th that it will provide loans to support the development funds for small and medium-sized enterprises (SMEs) experiencing financial difficulties due to prolonged high inflation and high interest rates.

The total scale of the policy fund loans amounts to 450 billion KRW. Specifically, this includes: ▲ 330 billion KRW in bank funds that can be used for rent, labor costs, and R&D expenses ▲ 70 billion KRW in policy funds for facility investments such as factory expansion or equipment purchases ▲ 50 billion KRW in special management stabilization funds for SMEs using low-credit or high-interest products.

For bank funds, if a loan of up to 300 million KRW is taken out from a commercial bank, Jeollanam-do will subsidize part of the loan interest (1.1%~2.0%P) every month.

With preferential support, the loan limit increases to 500 million KRW, and the interest subsidy can go up to 2.5%P.

Other preferential support targets include promising SMEs, small but strong enterprises, family-friendly certified companies, and companies specializing in materials, parts, and root technologies.

Especially this year, as part of livelihood support measures, an additional 0.4%P interest subsidy will be provided on top of the existing support rate. This can be received without a separate application. The fund size has been increased by 50 billion KRW compared to last year to support more SMEs.

Through the SME Development Fund established by Jeollanam-do, policy funds allow facility investment and operating funds of 500 million KRW to a maximum of 2 billion KRW to be loaned at low interest rates for up to 8 years. Venture companies are subject to a fixed interest rate of 2.5%, while other companies are subject to a variable rate of 3.0%.

The special management stabilization fund is also a policy fund utilizing the SME Development Fund, allowing loans of up to 300 million KRW per company at an interest rate of 3.9% for one year. For companies eligible for the Korea Credit Guarantee Fund's guarantee, the guarantee rate is set at 95% and the guarantee fee is reduced by 0.2%P. Companies using high-interest (4% or more) products can also refinance their loans.

Details and online applications can be found on the website of the Jeollanam-do SME Job Economy Promotion Agency's fund system.

For more information, contact the Jeollanam-do SME and Venture Business Division or the SME Job Economy Promotion Agency.

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