Expansion of Liquidity Support for Companies Affected by the Middle East War... Ministry of SMEs and Startups to Provide Additional 550 Billion Won

Additional 550 Billion Won in Policy Funds Secured Through Supplementary Budget
"Companies Affected by the Middle East War" Newly Included as Reason for Emergency Management Stabilization Fund

On April 20, the Ministry of SMEs and Startups announced that it will provide an additional 550 billion won in policy funds to support small and medium-sized enterprises (SMEs) struggling with management difficulties due to the prolonged Middle East war.

View of Yeosu National Industrial Complex experiencing supply disruptions due to the Middle East war. Photo by Yonhap News Agency

The additional policy funds for SMEs supplied through the supplementary budget are as follows: 250 billion won for Emergency Management Stabilization Fund, 100 billion won for New Market Entry Support Fund, 150 billion won for Innovative Startup Commercialization Fund, and 50 billion won for Restart Fund.

To strengthen liquidity support, the Ministry of SMEs and Startups will create a new category under the Emergency Management Stabilization Fund specifically for “companies affected by the Middle East war.” SMEs that are highly dependent on imports and exports with the Middle East, as well as those in the petrochemical supply chain, may be eligible for this support. For example, SMEs producing plastic products such as disposable syringes, fishing nets, and buoys are included.

For SMEs classified as “companies affected by the Middle East war,” the ministry plans not to apply the usual support restrictions for companies exceeding the criteria of 20 billion won in capital or 70 billion won in assets, nor the operational difficulty requirements of at least a 10% decrease in sales or operating profit. Applications will be accepted at any time to enable swift support. The loan limit is up to 1 billion won, with a loan period of up to five years and an interest rate of 3.64% for the second quarter.

Additionally, the New Market Entry Support Fund will be expanded to help exporting SMEs diversify their export markets. When SMEs face difficulties exporting to their existing markets due to external uncertainties and seek to diversify, the ministry will also exempt them from the normal “high-quality company” requirements. For working capital, the loan limit is up to 1 billion won for up to five years; for facility funds, up to 3 billion won for up to ten years. The policy fund base interest rate for the second quarter (3.14%) will apply.

The Ministry of SMEs and Startups will also expand support through the Innovative Startup Commercialization Fund for startups in innovative technology sectors such as artificial intelligence (AI) and deep tech. Supply of Restart Funds will also increase to revitalize the startup ecosystem and help entrepreneurs who have experienced honest failures to try again. For both funds, the loan limit is up to 500 million won for working capital and up to 6 billion won for facility funds. The innovative startup commercialization fund interest rate for the second quarter is 2.84%, and the restart fund is 3.14%.

Detailed information about these policy funds and the application procedures can be found on the websites of the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency, via the SME Policy Fund Lending Plan announcement. Emergency Management Stabilization Fund applications for companies affected by the Middle East war will be accepted on a rolling basis starting April 21.

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