Gyeonggi Housing & Urban Development Corporation (GH) announced on the 4th that it has established a 30 billion won ($21 million) "GH Mutual Growth Fund" to support small and medium-sized enterprises in Gyeonggi Province struggling with high interest rates and rising raw material costs.
The fund operates by GH depositing 30 billion won in operating capital with financial institutions, then using the interest generated to reduce loan rates for SMEs. Eligible recipients are SMEs that have purchased or leased GH industrial facility sites.
GH signed a "Mutual Growth Fund Agreement for Gyeonggi Province SME Co-prosperity" with Woori Bank on the 3rd and immediately began fund operations.
The fund features substantial interest rate reductions.
Companies selected for support can receive interest rate cuts of up to 3.05 percentage points on loans up to 1 billion won. This translates to annual financial cost savings of up to 30.5 million won per company.
"We hope this mutual growth fund will serve as a strong pillar for provincial companies to overcome their business crises and normalize operations," said GH President Kim Yong-jin. "We will continue to closely monitor loan conditions and reflect corporate feedback to develop effective mutual growth models where companies and the corporation can grow together."