Yongin Special City announced that it will expand the interest support rate for the ‘SME Support Agreement Loan’ from the existing 2% to 2.5% to alleviate the difficulties of local SMEs amid the economic recession and domestic and international economic uncertainty. This measure is evaluated as an active support measure to reduce the financial management burden of SMEs and inject vitality into the local economy.
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[Korean Today] Yongin Special City Mayor Lee Sang-il (left) and IBK Industrial Bank Vice President Choi Gwang-jin (right) signing the agreement at the ‘Yongin Special City IBK Industrial Bank Small and Medium Business Support Agreement Loan Business Agreement Ceremony’ held in the City Hall reception room on May 24th last year. © Reporter Kim Na-yeon |
Yongin Special City has increased the interest support range of the ‘Small and Medium Business Support Agreement Loan’ project from 2% to 2.5% for local small and medium businesses suffering from economic recession. This project supports low-interest loans for businesses through cooperation with IBK Industrial Bank and guarantee institutions, and Yongin City has expanded interest support throughout this year and strengthened practical support measures.
The SME Support Agreement Loan can be applied for by any SME whose headquarters or main business is located in Yongin City, and up to 500 million won is supported per company. The basic loan period is 1 year, and can be extended up to 3 years if necessary.
This agreement loan business is operated based on the cooperation between IBK Industrial Bank and the guarantee institution. IBK Industrial Bank provides loans to small and medium-sized enterprises, and the guarantee institution supports the guarantee fee up to 1.2%. In addition, Yongin Special City plans to expand the interest support range to 2.5% this year to reduce the actual burden of corporate operations.
Since the Yongin Special City and IBK Industrial Bank signed an agreement in May of last year, this project has played a significant role in solving the difficulties of small and medium-sized enterprises in securing funds in the region. A city official said, “Since small and medium-sized enterprises play a pivotal role in the local economy, we will help them secure stable operating funds by strengthening financial support.”
Yongin Special City expects that this interest support expansion measure will strengthen the management stability of local companies and contribute to economic revitalization. In addition, it plans to explore additional measures to support small and medium-sized enterprises and create an urban environment suitable for business operations.
City officials said, “At a time when small and medium-sized businesses are struggling due to the economic downturn and rising interest rates, we hope that the city’s expanded interest support will provide practical help in business operations,” adding, “We will continue to prepare various support measures to create a favorable environment for business growth.”
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