Hwaseong-si Invests 3.5 Billion KRW to Subsidize Interest Rate Differences on SME Loans

Hwaseong City in Gyeonggi Province has stepped up to support small and medium-sized enterprises (SMEs) by subsidizing part of the interest rate difference on loans to alleviate their management difficulties.

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On the 23rd, Hwaseong City announced that it will implement a working capital support project for SMEs, providing a 2% interest rate difference subsidy to ease the financial burden on local SMEs.

The total budget for this project is 3.5 billion KRW. The city explained that the interest rate difference subsidy will generate a loan support effect worth approximately 175 billion KRW.

Unlike last year, the city will divide the support targets into two phases this year and proceed with the project in two rounds.

The first round of support targets SMEs in the area that suffered damage from natural disasters such as heavy snowfall in November last year. The purpose is to prioritize support so that SMEs facing severe management difficulties due to disasters can recover quickly. The second round targets local small and medium manufacturing companies, Inno-Biz, and Main-Biz certified companies.

For more detailed information about the project, please refer to the city’s website or contact the Corporate Support Division’s Corporate SOS Team.

Jung Myung-geun, Mayor of Hwaseong City, said, "This project aims to reduce the management burden on SMEs and promote the revitalization of the local economy. We will carefully manage the project to ensure that disaster-affected companies and manufacturers receive tangible benefits."

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