Gwangju Metropolitan City to Provide an Additional 10 Billion Won in Loans for Small and Medium-Sized Enterprises’ Structural Upgrading Fund

[Financial News, Jeonnam-Gwangju = Reporter Hwang Tae-jong] Jeonnam-Gwangju Integrated Metropolitan City (Gwangju Metropolitan City) will provide an additional 10 billion won in the second half of the year, following 30 billion won in low-interest structural upgrading loans in the first half to help local small and medium-sized enterprises ease financing difficulties and reduce financial burdens.
 Eligible applicants are manufacturers or manufacturing-related service companies with manufacturing or service operations in one of the five autonomous districts in the Gwangju area, and whose manufacturing or service specialization ratio is at least 30%.
 Applications will be accepted from Sept. 1 until the allocated funds are exhausted. Applicants must submit the required documents online through the fund loan management system operated by the Gwangju Economic Promotion and Win-Win Jobs Foundation.
 The loan interest rate will be set at 2.12% per year, below market rates. Companies whose sales or operating profit have fallen by at least 10% will receive an additional 0.5 percentage point reduction.
 The support is capped at 1 billion won for facility funds, with a three-year grace period and repayment in equal installments over five years, and 300 million won for operating funds, with a one-year grace period and repayment in equal installments over two years. Preferred companies that already hold Gwangju city certifications, such as excellent small but strong companies, outstanding job-creating companies, and Gwangju-style job-creation companies, may receive additional support of up to 10% of the approved amount.
 Selected companies may receive the loans from eight banks, including Industrial Bank of Korea, Kwangju Bank, Nonghyup Bank, KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Korea Development Bank (KDB), after submitting the approval letter issued by the foundation and passing the review process.
 Oh Young-geol, head of the Economic and Startup Bureau of Gwangju Metropolitan City, said, "Since last year, we have been providing additional structural upgrading funds in the second half as well to ease the burden on more companies." He added, "I hope this support will help small and medium-sized enterprises resolve financing difficulties and improve business conditions."

[email protected] Hwang Tae-jong Reporter