Yeosu to Launch Interest Subsidy Support Project for Industrial Crisis Response

Up to 500 Million Won in New Operating Funds Per Company at 3.0% Annual Interest Subsidy
380 Million Won in National Funding Allocated
Workforce Development Programs Also Planned

On August 29, the city of Yeosu in South Jeolla Province (Mayor Chung Kimyung) announced that it will actively implement the “Regional Industrial Crisis Response Interest Subsidy Support Project,” following its designation as an Industrial Crisis Response Area on May 1.

This project aims to ease the financial burden on small and medium-sized enterprises (SMEs) and mid-sized companies struggling with the downturn in the petrochemical industry. It will be funded by 380 million won in national funds secured through a government supplementary budget.

Yeosu City Hall exterior view.

In particular, this support measure is significant because it reflects the continuous requests from local companies for interest subsidies on management stabilization loans. Eligible recipients include SMEs and mid-sized companies engaged in the manufacture of basic chemicals (C201), synthetic rubber and plastic materials (C202), or other closely related upstream and downstream industries in the petrochemical sector.

The funds available for support are working capital needed for business operations and sales activities; loans for the purpose of repaying existing debts are not eligible. The maximum loan limit per company is 500 million won, and an annual interest subsidy of 3.0% will be provided for the loan.

Applications can be submitted online through the Korea Institute for Advancement of Technology (KIAT) website until November 14, and the program may close early if the budget is exhausted. Companies selected through the review process will receive a recommendation letter, which can be used to apply for a final loan through the designated banks’ screening process. The participating banks are Industrial Bank of Korea, KB Kookmin Bank, NongHyup Bank, Hana Bank, Shinhan Bank, Woori Bank, and Busan Bank-a total of seven financial institutions.

The city also plans to launch additional business support and workforce development programs in September, and detailed information will be announced on the city’s website and other channels.

Mayor Chung Kimyung stated, “We have prepared this interest subsidy project with national funding to provide substantial relief from financial burdens for local companies facing difficulties due to the petrochemical industry crisis. Going forward, we will continue to actively support business stabilization and do our best to help overcome the industrial crisis through practical measures such as workforce development.”

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