Changwon Special City, Rapid Support of 200 Billion KRW for Small and Medium Enterprise Development Funds

Changwon Special City to Promote
Customized Support Projects for SMEs
to Resolve Management Difficulties and
Strengthen Competitiveness

Changwon Special City in Gyeongnam will actively promote customized support projects for small and medium-sized enterprises (SMEs) to resolve management difficulties and strengthen corporate competitiveness.

Changwon Special City Hall.

Changwon Special City will promptly provide SME development funds totaling 200 billion KRW (160 billion KRW for management stabilization funds and 40 billion KRW for facility funds) at the beginning of the year.

The existing loan limits for special enterprises were 400 million KRW for management stabilization funds and 700 million KRW for facility funds. However, this year, the limits have been raised to 500 million KRW for management stabilization funds and 1 billion KRW for facility funds, significantly expanding support for special target companies such as Changwon-type strong small enterprises and family-friendly certified companies.

Furthermore, for startup companies, which previously could only apply if their sales were under 100 million KRW, the loan threshold has been lowered this year without any restrictions to help stabilize the management of struggling startups and provide stable financing.

The support targets are SMEs headquartered and operating in Changwon City, including registered manufacturing factories, software industries, and cooperative companies in shipbuilding, aviation, nuclear power, and defense industries.

Currently, loan applications are being accepted at nine commercial banks that have signed business agreements with the city (BNK Gyeongnam, KB Kookmin, IBK Industrial Bank, NH Nonghyup, iM Bank (formerly Daegu Bank), BNK Busan, Shinhan, Woori, and KEB Hana Bank). As of the end of January, loans totaling 12.8 billion KRW have been approved for 49 companies.

The loan limit per company is up to 300 million KRW for management stabilization funds (500 million KRW for special enterprises) and 500 million KRW for facility funds (1 billion KRW for special enterprises), within 50% of the sales reported on financial statements. The total loan limit per company is 500 million KRW (1 billion KRW for special enterprises), with an interest subsidy of 2.5% per annum, supported through a two-year grace period with lump-sum repayment.

Changwon City will systematically nurture SMEs and provide customized support through four main projects: ▲ Changwon-type Strong Small Enterprise Development Project ▲ Changwon Enterprise Support Group On-site Difficulty Consulting Project ▲ SME ESG Management Activation Support Project ▲ SME Capacity Building (Scale-up) Support Project.

Changwon City has been designating and nurturing strong small enterprises since 2015, aiming to expand to 300 Changwon-type strong small enterprises by 2030. This year, eight new companies will be selected to support the development of core technologies for prototype development. Additionally, among the 121 already designated strong small enterprises, six companies will be selected to focus on product commercialization and overseas market expansion.

Moreover, to resolve technical and managerial difficulties occurring on-site, experts in various fields will visit companies to provide one-on-one short- and long-term consulting. For companies that complete the first stage of on-site difficulty support, assistance will extend to prototype production, process improvement, and linkage to commercialization.

To proactively respond to domestic and international regulations and management requirements regarding ESG for SMEs, five companies will be selected again this year, following last year, to diagnose ESG levels and conduct customized consulting to help develop ESG management execution systems.

Furthermore, the city aims to expand the number of family-friendly certified companies, which exemplify work-life balance, from the current 70 to 150 by 2028. This year, 15 companies will receive family-friendly management level diagnosis and design consulting to support obtaining family-friendly certification.

Hong Nampyo, Mayor of Changwon Special City, stated, “In a situation where prolonged domestic demand stagnation is intensifying due to high interest rates, the difficulties faced by SMEs are expected to continue. Changwon Special City will do its utmost to alleviate the financial burden on SMEs and drive corporate growth through customized support projects, thereby revitalizing the livelihood economy.”

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