Busan City provides 50 trillion won support to small and medium-sized enterprises... Expecting regional economic vitality

Busan City announced a large-scale funding support plan to alleviate the financial difficulties of small and medium-sized enterprises (SMEs) and activate the local economy. On the 3rd, Busan City signed a business agreement with the Busan Chamber of Commerce and Industry, the Technology Guarantee Fund, the Credit Guarantee Fund, and Hana Bank to raise a total of 500 billion KRW in policy funds.

The agreement aims to support local SMEs facing financial shortages and actively cultivate high-growth potential companies. To this end, Busan City will provide secondary guarantee support at 2.0%, with the Busan Chamber of Commerce and Industry responsible for introducing financial support programs to member companies and recommending eligible businesses. The Technology Guarantee Fund and the Credit Guarantee Fund will assist companies through credit guarantees, while Hana Bank commits to providing special investments and preferential interest rates.

Through this program, companies can receive up to 30 billion KRW in support, with the secondary guarantee support capped at 8 billion KRW. This initiative aims to ensure that many applying companies can enjoy tangible benefits. Additionally, the secondary guarantee rate has been increased from 1.5% to 2.0%, further reducing the burden on businesses.

Repayment options are also diversified, allowing companies to choose either “a 3-year term with a 2-year grace period followed by 1-year repayment” or “a one-time repayment after a 3-year grace period.” This flexibility is intended to broaden options based on financial conditions and minimize pressure on businesses.

Taking advantage of this agreement, Busan City plans to strengthen cooperation with financial and guarantee institutions to discover and support companies with technological strength and growth potential, thereby further activating the local economy. This move is expected to have a positive impact on cultivating key enterprises in Busan and the Gyeongnam region. The changes brought by this funding support system to the regional economy are worth ongoing attention.