North Gyeongsang Province Mobilizes to Stabilize Chuseok Prices, Provides KRW 120 Billion in Working-Capital Loans to SMEs

【Financial News, Andong = Reporter Kim Jang-wook】North Gyeongsang Province is mobilizing to stabilize prices during the Chuseok holiday.
To this end, the province has designated September 11 through 27 as the “Special Measures Period for Stabilizing Chuseok Holiday Prices” and will operate a comprehensive price-measures situation room with 22 cities and counties across the province.
During the special measures period, the province will closely monitor price trends for 19 holiday-demand items, including apples, pears, beef, pork, croaker, and pollock, and publish the information on its website.
Officials from the province and cities and counties, along with employees of affiliated agencies, will also hold traditional-market shopping events through September 23 to help increase sales for local small business owners.
In particular, the province plans to maintain a cooperative system with related agencies, cities, and counties to prevent factors that could destabilize prices during the holiday period and respond swiftly to any unusual signs identified on the ground.
Lee Gyeong-gon, Director of the Economic and Trade Bureau, emphasized, "This year's Chuseok falls amid concerns that supply and demand for agricultural, livestock, and fishery products could become unstable due to abnormal weather, including heat waves and torrential rain, while holiday demand is also rising. We will closely monitor the supply and prices of holiday-demand items so residents can prepare for the holiday without undue financial pressure. We will do our utmost to stabilize Chuseok prices by working closely with cities, counties, and related agencies and responding swiftly to factors that could cause price instability."
North Gyeongsang Province will also provide KRW 120 billion in working-capital loans, funded through bank cooperation, to ease the financial difficulties of small and medium-sized enterprises in the province facing concentrated demand for funds to cover labor costs and the purchase of raw and subsidiary materials ahead of Chuseok.
Applications for the funds were accepted for 12 days, from August 24 through September 4, through cities and counties and the online Gfund system. As of September 7, 567 companies had applied for KRW 167 billion, and reviews by the cities and counties and requests for loan recommendations are under way.
Gyeongsangbuk-do Economic Promotion Agency plans to complete the decisions and notifications on loan recommendations sequentially by September 11, while loan disbursements are scheduled to be completed by September 23, just before the Chuseok holiday.
The support limit is KRW 300 million per company, or KRW 500 million for preferential applicants, with a one-year grace period followed by repayment under the agreed terms. The province will subsidize 2% of the loan interest for one year, while cities and counties will provide additional support ranging from 2% to 5%.
Lee said, "As many companies are facing pressure on their operating funds ahead of the holiday, we will expedite the loan recommendation process as much as possible so that loans can be disbursed before the holiday begins."
Meanwhile, North Gyeongsang Province is operating a total loan program of KRW 1.336 trillion this year for small and medium-sized enterprises' working capital, consisting of KRW 370 billion from the province and KRW 966 billion from cities and counties. Eligible recipients include companies in 12 industries, including manufacturing and construction, as well as key companies targeted for development by the province, such as social enterprises and venture companies.

[email protected] Kim Jang-wook Reporter