Jeonnam Province Offers Low-Interest Tourism Promotion Fund Loans in Second Half to Boost Tourism

Applications accepted until the 16th...
Loan limit up to 3 billion won

Jeonnam Provincial Government Office View

On July 1, the Jeonnam Provincial Government announced that it will implement the "2025 Second Half Tourism Promotion Fund Loan" to help stabilize the management of the tourism industry and strengthen the competitiveness of the tourism sector.

The Tourism Promotion Fund loans are available to private tourism businesses for facility expansion and operational funds, including domestic and international travel agencies, tourist accommodation businesses, tourist pension businesses, camping site operators, and Hanok experience businesses.

In February, Jeonnam Province selected a total of 30 tourism businesses to receive loans totaling 11 billion won for the first half of the year.

The total loan amount for the second half of this year is expected to be around 5 billion won. The interest rate is set at the province's minimum rate of 1.0%. Support includes facility loans for new construction, expansion, or renovation of tourism facilities such as tourist hotels and pension businesses, as well as operational loans for expenses such as labor costs and office rent for tourism companies.

The maximum loan amount ranges from 100 million won to 3 billion won depending on the business type and purpose. The repayment period is 11 years (4 years of grace and 7 years of installment repayment) for new construction, 7 years (3 years of grace and 4 years of installment repayment) for expansion, 5 years (2 years of grace and 3 years of installment repayment) for renovation, and 5 years (2 years of grace and 3 years of repayment) for operational funds regardless of business type.

In particular, to help resolve management difficulties in the tourism industry, such as the passenger plane accident at the end of last year, the repayment period for operational funds will be temporarily extended by two years.

Applications for the second half Tourism Promotion Fund loan support program are open until the 16th. Applicants must submit the required documents to the tourism department of the city or county where their business is located, either by mail or in person (for facility funds).

Details on application requirements, required documents, and important notes can be found in the announcement posted on the Jeonnam Provincial Government or city and county websites.

Yoo Hyeonho, Director of Tourism and Sports at Jeonnam Province, said, "To support the management stability of travel agencies and tourism businesses facing difficulties due to the passenger plane disaster at the end of last year, we expanded the loan selection to a record 11.1 billion won in the first half of this year," adding, "We will continue to provide support to revitalize the local tourism industry and resolve management difficulties."

Since 2013, Jeonnam Province has created a Tourism Promotion Fund of 64.4 billion won and has provided 58.2 billion won in support to 174 businesses so far, greatly benefiting the tourism industry.

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