Busan City to Overhaul SME Financial Support... Launches "Special Fund for Technological Innovation"

Supplying Funds When Needed
Reducing Financial Burdens for SMEs

The Busan Metropolitan Government is significantly revising its financial support system to alleviate funding difficulties and stabilize management for local small and medium-sized enterprises (SMEs).

On September 2, Busan City announced its 2025 SME Financial Support Plan and stated that it will improve the system so that SMEs can receive support more quickly and flexibly when needed.

First, the application cycle for SME development funds has been changed from every even month (six times a year) to monthly applications. In addition, the previous rule that limited the number of working capital support applications to a maximum of four times has been abolished, allowing companies to receive the necessary funds regardless of the number of applications.

A new "Special Fund for Technological Innovation" has also been established to help startups and venture companies secure funding. Each company can receive up to 3 billion won in working capital loans, and the city will provide interest subsidies of 1.5% for the first year and 1.0% for the second and third years, within a loan limit of 800 million won. Eligible companies are those that meet the Korea Technology Finance Corporation's guarantee requirements and have their headquarters or main business location in Busan, operating in fields such as innovative growth, technology startups, or job creation. Applications for this special fund will be accepted at the Busan branch of the Korea Technology Finance Corporation starting September 15.

The city expects that these improvements will make it easier for companies to secure funding, reduce their financial costs, and contribute to revitalizing the local economy.

Financial support for small business owners will also continue. The city is easing management burdens through the "Hope-Link Card for Small Business Owners" and the "Special Guarantee Program for Overdraft Accounts." The Hope-Link Card provides a dedicated credit card for operating expenses with a limit of up to 5 million won per person, while the overdraft account offers a limit of up to 5 million won. If both products are applied for simultaneously, guarantee support of up to 10 million won is available. Credit card users can also benefit from up to six months of interest-free installments and receive a Dongbaekjeon cashback of 3% of their spending, up to 100,000 won per year.

Kim Bongcheol, Director of Digital Economy at Busan City, emphasized, "We have completely overhauled the system so that companies can receive funding when needed and reduce their financial burdens," adding, "We will continue to create a stable management environment through customized support tailored to the characteristics of each company."

Busan City Hall

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