BUSAN < invest Korea

(BUSAN=Yonhap News) Busan Metropolitan City will be spending a total of KRW 1.87 trillion to help local SMEs that are experiencing difficulties this year.

At an information session on the city's economic policies for 2018 held on November 29, the city government announced that it will focus its efforts on responding to manufacturing crises, supporting small businesses, and globalizing the local economy.

First, the city will spend KRW 1.87 trillion to help SMEs respond to manufacturing crises.

To help local SMEs overcome the labor shortage, young SME employees who drive EVs will receive KRW 300,000 a month for three years, and those who work for five years at an SME will be issued a 'well-being welfare card' worth KRW 1 million annually.

For the local shipbuilding and auto parts industries, which are currently going through a time of crisis, a comprehensive set of support measures will be established, and support will be provided to make inroads into the emerging markets of Russia, ASEAN countries, and India.

For the textile industry, a center for marine convergence materials and control tower for marine leisure and sports will be constructed by the end of this year, and start developing new materials and technologies, and provide support for marketing efforts to help the local textile industry to transform itself into a high-added-value industry.

At the Centum Industrial Complex, a robot industry integration zone for finding next-generation growth engines will be created on a site of 80,000 square kilometers.

The total amount of special funds provided to small businesses at an annual interest rate of 2.5 percent will be expanded from last year's KRW 100 billion to KRW 200 billion, and a new fund worth KRW 10 billion will be created to provide liquidity and help them overcome financial difficulties.

In addition, for the first time in the country, the city will provide KRW 200,000 per person for health exam expenses to enhance the level of welfare at small firms, and introduce a long-term commercial real estate lease system to help small companies secure a place of business.

And as more baby boomers retire, the city will inject KRW 100 billion to create 40,000 new jobs for middle-aged and older job seekers.

The city plans to reorganize its existing Five Major Strategy Industries by the end of this year, and thereby enhance the structure of textile, footwear, and other existing industries, as well as nurture new growth engines such as the drone industry and super semiconductors.



joseph@yna.co.kr

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Source: Yonhap News (Jan. 29, 2018)