Additional 100 Billion KRW Liquidity Supplied to Nuclear Power Industry... Annual 2% Loans for Small and Medium Enterprises

by Ju Sangdon

Published 28 Jan.2024 11:00(KST)

The Ministry of Trade, Industry and Energy announced on the 28th that it will officially launch the "Nuclear Power Ecosystem Financial Support Project," a 100 billion KRW fund to provide low-interest loans for facilities and operating funds to small and medium-sized enterprises (SMEs) and mid-sized companies in the nuclear power sector, starting from the 29th (Monday), to alleviate financial difficulties and strengthen competitiveness within the nuclear power ecosystem.

This project features government budget-backed low-interest loans at around 2% (2.25% as of Q1 2024) to provide more comprehensive support to SMEs struggling due to the aftermath of the nuclear phase-out policy. This rate is about half of the average loan interest rate from commercial banks, and it is expected to help resolve the blind spots in financial support by additionally assisting companies that have found it difficult to secure loans due to high interest burdens.

Shin Hanul Units 1 and 2 Overview (File Photo)

The loan limit is up to 11 billion KRW per company (10 billion KRW for facilities, 1 billion KRW for operating funds), with a maximum loan period of 10 years (10 years for facilities, 2 years for operating funds), offering more favorable conditions compared to similar loan products. The Ministry of Trade, Industry and Energy expects this to be especially helpful for nuclear power companies aiming to expand investments such as facility upgrades and workforce recruitment, following the recent recovery in order volumes and ecosystem vitality.

Companies wishing to participate in the project can submit their business plans and application documents online to the Korea Nuclear Industry Association by the 15th of next month. After undergoing an evaluation process according to the project announcement, companies that receive a recommendation letter from the Korea Nuclear Industry Association can obtain loan funds following the loan screening by the handling banks. The Korea Nuclear Industry Association, the project executing agency, plans to hold project briefing sessions over five days from the 30th to February 5th across five major regions (Capital area, Chungcheong area, Gyeongnam, Gyeongbuk, Busan).

The Ministry of Trade, Industry and Energy will continue to make every effort to ensure that the orders and funds supplied to the nuclear power ecosystem promote new investments and lead to tangible export achievements.