Daegu City Provides 1.2 Trillion KRW in Business Stability Funds for SMEs... Loan Interest Subsidy of 1-2.2%

New 200 Billion KRW Conversion Fund Established
1,000 Billion KRW Support for Alleyway Commercial Districts

Daegu City announced on the 14th that it will provide 1.2 trillion KRW worth of 2025 Daegu City Small and Medium Enterprise (SME) Management Stabilization Funds to reduce financial costs and promote management stability for SMEs (including mid-sized enterprises) and small business owners.

The Daegu City SME Management Stabilization Fund support project helps local SMEs (including mid-sized enterprises) and small business owners obtain low-interest working capital loans from commercial banks, and compensates part of the loan interest (1.0%~2.2%) for one year with city funds depending on the loan amount and preferential conditions.

Daegu City Sangyeok Government Complex

The loan support scale for 2025 remains the same as the previous year at 1.2 trillion KRW, and considering the prolonged domestic demand slump, high interest rates, and high exchange rates, the funds will be concentrated in the first half of the year.

The purpose is to provide practical support that companies need by supplying customized funds tailored to demand and circumstances.

In particular, this year, a new “Conversion Fund” worth 200 billion KRW will be established for SMEs and small business owners who are suffering from double burdens due to excessive financial costs and loan repayment burdens caused by prolonged high interest rates. The Conversion Fund allows existing high-interest guaranteed loans to be converted into loans with favorable conditions such as lower interest rates and extended repayment periods.

Additionally, a new “Tourism Special Zone and Alleyway Commercial District Revitalization Support Fund” of 100 billion KRW will be established to revitalize Dongsung-ro, designated as Daegu’s first tourism special zone, and local alleyway commercial districts.

Applications for funds can be submitted from the 17th at Daegu Credit Guarantee Foundation and branches of the Credit Guarantee Fund and Technology Credit Guarantee Fund.

Applications for the holiday management stabilization fund, aimed at companies experiencing temporary financial difficulties during the Lunar New Year holiday period, will also begin on the 17th.

Park Ki-hwan, Director of the Economic Bureau of Daegu City, said, “We hope that Daegu City’s financial support will provide practical help to SMEs and small business owners struggling with the prolonged economic downturn,” and added, “We will do our best to help the local economy regain vitality through funds such as the Tourism Special Zone and Alleyway Commercial District Revitalization Support Fund.”

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