The Gyeongsangbuk-do provincial government has decided to extend 120 billion won in financial support to cash-strapped SMEs before and after the Lunar New Year holiday.
The plan is part of the provincial government’s efforts to lend a helping hand to small businesses in the provincial area, which are under heavy financial stress due to a surge in expenses related to manpower, material and equipment purchase costs. Higher costs particularly strike SMEs before and after the traditional holiday season.
The operational funds for SMEs is conducted by subsidizing 2 percent of their annual loans interest to borrowers from 14 commercial banks.
Beneficiaries of the funds are SME companies specializing in such businesses as manufacturing, construction, trading and transportation in the provincial area.
Each beneficiary company can borrow a maximum 300 million won. Such companies designated by the provincial government as prominent enterprises include firms recognized for creating jobs, hiring the handicapped. SME prize-winners are qualified to take out loan of up to 500 million.
Would-be loan beneficiaries are required to submit loan applications at the city or county office in the location of their firm after holding consultations with a bank on the amount of the loan. Applications can be accepted during the period between Feb. 10 and Feb. 19. The application period may vary according the situation of each city and county office.
“The provincial government will continue to monitor the difficulties SMEs experience in the field as part of efforts to ramp up field-oriented corporate support, while striving to make diverse efforts to stabilize corporate management through follow-up management of beneficiaries,” Director Kang Suk-hoon of the SME and Venture Department at the Gyeongsang-buk-do provincial government said.
Provincial Govt. Supports Hanok in 2018
The provincial government plans to implement a project to provide financial support for the construction of 35 hanok, traditional Korean house, units this year.
Under the project, the government will provide 40 million won in financial support for anyone who builds hanok units. The project, designed to promote the spread of high-class, eco-friendly hanok units and invigorate the regional economy, subsidizes part of the cost for building a new hanok unit. Beneficiaries residing in the provincial area are required to build a hanok with more than 60 sq. meters in ground floor space.
Would-be beneficiaries are required to submit an application to their city or county office by March 30. Beneficiaries will be finalized by a provincial screening committee in April. The beneficiaries can receive the subsidy only after dedicating their hanok unit.
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A view of a hanok village being built under a pilot project of the Gyeongsangbuk-do provincial government. (Photos: Gyeongsangbuk-do provincial govt.)
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