Jeonnam Province Allocates 20 Billion Won Exclusively for Construction Industry Fund

Aimed at Revitalizing the Local Construction Industry
Lending Limits for Policy Funds Also Raised

A scene of consulting on policy funds for small and medium-sized enterprises in the Jeonnam region. Provided by Jeonnam Province

Jeonnam Province announced that it has established, for the first time this year, a dedicated operating fund of 20 billion won specifically for the construction industry to support local small and medium-sized enterprises (SMEs) facing liquidity crises. The province has also raised the lending limit for policy funds.

This measure aims to alleviate the financial difficulties of local companies suffering from a combination of challenges, including prolonged high interest rates, persistent inflation, a sluggish construction market, and rising raw material prices.

In particular, the construction industry is highly sensitive to cash flow, with business operations heavily dependent on liquidity. The construction industry operating fund introduced by Jeonnam Province reflects longstanding requests from the sector.

The dedicated operating fund for the construction industry totals 20 billion won. Each company can apply for up to 300 million won, with a maximum loan period of two years at an annual interest rate of 3.0%. Applications can be made separately from general operating funds.

Jeonnam Province has also increased the maximum policy fund loan limit for preferred companies from 2 billion won to 2.3 billion won, allowing for broader access to funding.

In addition, the province will provide an extra 0.4 percentage points on top of the existing interest subsidy rate for this year only. This additional support will be applied automatically without a separate application.

Seo Eunsoo, Director of the Job Investment and Attraction Bureau of Jeonnam Province, stated, "The establishment of the construction industry operating fund reflects the real needs of the industry," and added, "We hope this will provide tangible assistance to companies struggling to secure liquidity."

The total scale of Jeonnam Province's SME policy fund loans is 470 billion won, which includes: 330 billion won in bank funds that can be used for rent, labor costs, or research and development expenses; 70 billion won in policy funds for facility investment such as factory expansion or equipment purchases; 50 billion won in special management stabilization funds for SMEs using low-credit or high-interest products; and 20 billion won in dedicated construction industry operating funds (newly established).

Further details can be found on the website of the Jeonnam Small and Medium Business Job and Economy Promotion Agency's fund system, or by contacting the Jeonnam Provincial Office's Small and Medium Venture Business Division or the Jeonnam Small and Medium Business Job and Economy Promotion Agency.

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