Gyeongnam Province is strengthening field-oriented policy support for small and medium-sized enterprises, small business owners, and workers who sustain the regional economy amid prolonged high inflation and high interest rates.
The provincial government held a briefing at the provincial office press center on the 24th to announce its key economic and trade policies for this year. The province plans to continue its SME development fund support program worth 1.1 trillion won, following last year's initiative. This includes 700 billion won in general funds and 400 billion won in special funds. The province will provide interest rate subsidies ranging from 0.75% to 2.1%.
The application process, a chronic source of inconvenience, has been significantly streamlined. Required documents will be reduced from seven types to four starting in July. The restriction that limited applications from companies that had received support three or more times in the past four years has also been eliminated. For special funds, an evaluation system will replace first-come-first-served applications to ensure funds reach businesses that need them most.
Support for small business owners will also expand to 200 billion won. A new 5 billion won emergency business stabilization fund has been established for small business owners affected by natural or social disasters. Policy funds for entrepreneurs aged 39 and under have been increased from 5 billion won to 8 billion won.
Employment and industrial accident insurance subsidies for self-employed individuals will be expanded from sole proprietors to all small business owners, reducing gaps in social insurance coverage. The Yellow Umbrella Hope Incentive, which serves as a retirement fund for small business owners, will receive 1.7 billion won this year, an increase of 700 million won from the previous year. The province is also considering introducing a new mutual insurance model to help prepare for natural disasters and economic crises.
To guarantee rest rights for mobile workers such as delivery drivers, courier drivers, and designated drivers, the province will establish four new rest stations in Sacheon (2 locations), Gimhae (Jinyeong, 1 location), and Changwon (Masan Howon, 1 location). To address industrial labor shortages, the province will build "Foreign Worker Settlement Support Complex Centers" to help foreign workers settle stably and work long-term. By 2027, a total of 18 billion won will be invested to build centers at Sanam Agricultural-Industrial Complex in Sacheon and Daedong High-Tech Industrial Complex in Gimhae, providing systematic support for housing, administrative services, and daily living from the early stages of arrival.
Additionally, the province plans to use the Local Extinction Response Fund to support environmental improvement projects, including dormitory renovations for foreign workers, in 12 cities and counties designated as population decline or areas of concern, including Miryang and Tongyeong.
Kim In-su, Director of the Economic and Trade Bureau of Gyeongnam Province, said, "Workers, SMEs, small business owners, and foreign workers who toil on the front lines of people's livelihoods are the most valuable assets sustaining Gyeongnam's economy." He added, "We will implement field-centered policies that people can feel."
