by Jeong Ilwoong
Published 18 Apr.2023 09:23(KST)
An analysis has revealed that Daejeon City's financial policy fund support project for small business owners has contributed to revitalizing the local neighborhood economy.
On the 18th, the city announced that, through the Education and Research Department of the Korea Credit Guarantee Fund Central Association, an analysis of the economic impact of the city’s financial policy funds for small business owners in the first quarter confirmed achievements such as a production and added value effect of 356.8 billion KRW and employment inducement of 3,992 people.
The financial policy fund support for small business owners is promoted to reduce the interest burden on small business owners caused by the high-interest rate trend and to alleviate management difficulties.
The city operates a 165 billion KRW “low-interest refinancing special guarantee” and a 200 billion KRW “small business management improvement fund” to proactively respond to difficulties in financing faced by local small business owners and the possibility of short-term financial market tightening.
In the first quarter, a total of 133 billion KRW in policy funds (loans), including 82 billion KRW from the low-interest refinancing special guarantee and 51 billion KRW from the small business management improvement fund, was provided to 5,310 small business enterprises in the region.
Through this, it is analyzed that the region generated a production inducement effect of 243.1 billion KRW, an added value inducement effect of 113.6 billion KRW, employment inducement of 2,696 people, and job inducement of 1,296 people.
In particular, the top five industries (by loan scale) receiving loans under the low-interest refinancing special guarantee included ▲ wholesale and retail trade and commodity brokerage services ▲ food service and accommodation services ▲ education services ▲ real estate services ▲ construction.
Also, the top five industries by loan scale for the small business management improvement fund were ▲ wholesale and retail trade and commodity brokerage services ▲ food service and accommodation services ▲ transportation services ▲ construction ▲ education services, in that order.
Meanwhile, from 2020 to 2022, to overcome damages caused by COVID-19 and the three highs (high interest rates, high prices, and high exchange rates), the city implemented special guarantees such as 788 billion KRW in small business management improvement funds and city-district cooperative small business balanced growth funds for over 35,000 enterprises.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.