DAEJEON < invest Korea

According to Yonhap News,

On January 9th, Daejeon-si announced that it will promote a small and medium-sized enterprise (SME) development fund program worth KRW 310 billion this year.

The SME development fund is composed of the following: KRW 100 billion in management stability funds to support business operating costs such as labor and administrative expenses, and KRW 100 billion in regional-specialized agreement guarantees to foster local industries; KRW 50 billion in funds for startups and competitiveness enhancement to support land purchases and facility investments; KRW 60 billion in conditional purchase production support funds to support production of products, including the purchase of parts and raw materials.

Of them, a total of KRW 160 billion will be provided in the first half of the year, including KRW 60 billion for management stability funds and regional-specialized agreement guarantees, KRW 25 billion for startup and competitiveness enhancement funds, and KRW 15 billion for conditional purchase production support funds.

The maximum support limit for management stability funds has been adjusted from KRW 500 million to KRW 300 million, and the interest rate for startup and competitiveness enhancement funds has been reduced from 6% to 5%. The interest burden on businesses has also been eased from 3% to 2–3%, with preferential interest rates applied to companies participating in local verification projects and businesses with over 20 years of operation in Daejeon.

The city expects that financial burdens on SMEs will be reduced through interest rate subsidies and low-interest loans.

Applications for the SME development fund can be made on the website of Daejeon Biz (http://www.djbea.or.kr).

kjunho@yna.co.kr

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Source: Yonhap News, (January 9, 2025)