Busan City Releases 20 Billion Won Policy Fund for Business Succession and Management Stability

Promoting Financial Support for SME M&A Revitalization

Busan Metropolitan City (acting mayor Kim Kyung-deok) is taking steps to revitalize mergers and acquisitions (M&A) for regional small and medium-sized venture enterprises, and will also support business succession.

On May 18, Busan Metropolitan City announced the signing of a Financial business agreement with the Busan Regional Office of SMEs and Startups, Busan Chamber of Commerce and Industry, Korea Technology Finance Corporation (KOTEC), and BNK Busan Bank to support the activation of M&A for the sustainable management of Busan's small and medium-sized enterprises.

This agreement was established to reduce business succession gaps among regional SMEs and to foster the growth of promising companies.

The participating organizations will create a policy fund totaling 20 billion won through this agreement to provide financial support to local companies. Busan Metropolitan City will offer a 2% interest subsidy, while the Busan Regional Office of SMEs and Startups and the Busan Chamber of Commerce and Industry will be responsible for recommending eligible companies and providing business guidance. Korea Technology Finance Corporation will provide credit guarantees, and BNK Busan Bank will offer special contributions and preferential interest rates.

The maximum loan limit per company is 10 billion won, and the interest subsidy provided by Busan Metropolitan City is capped at 800 million won per company. Busan Metropolitan City explained that the interest subsidy rate has been increased from last year’s 1.5% to 2% this year.

For repayment, companies can choose between two methods based on a three-year maturity: a two-year grace period followed by one-year installment repayment, or a lump-sum repayment after a three-year grace period.

Busan Metropolitan City plans to leverage this agreement to identify regional companies with technological prowess and growth potential, and to strengthen a collaborative system that connects guarantees, financial support, and growth assistance.

This year, Busan Metropolitan City is also promoting support projects totaling 1.368 trillion won in SME operating funds and 800 billion won in funds for small business owners.

Kim Bongcheol, Head of the Digital Economy Office of Busan Metropolitan City, stated, "We will continue to provide support to enhance management stability and competitiveness for regional small and medium venture enterprises."

Overview of Loan Execution for Regional Small and Medium Venture Businesses.

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