As small and mid-sized enterprises in South Gyeongsang Province face worsening funding difficulties amid prolonged high interest rates and rising loan delinquency rates, the provincial government is stepping in with 320 billion won in tailored corporate support funds.
South Gyeongsang Province announced a plan on the 4th to provide 320 billion won in "2026 third-quarter small and medium enterprise development funds" to stabilize management and boost investment among SMEs.
The funds will be operated as 180 billion won in general funds and 140 billion won in special funds. The general funds consist of 100 billion won in management stabilization funds and 80 billion won in facility and equipment funds.
The province's SME development funds operate by subsidizing part of the interest when local SMEs take out loans from financial institutions. Supported firms receive interest subsidies ranging from 0.75 percentage points to a maximum of 2.1 percentage points on their loan rates, depending on the type of funding and their circumstances. Loan periods are two to three years for management stabilization funds and five to 10 years for facility and equipment funds.
Starting this third quarter, document requirements for companies have been simplified using the Administrative Information Sharing System. Three items — business registration certificates, national and local tax payment certificates, and SME confirmation certificates — are excluded from submission requirements. However, essential documents for qualification verification, such as standard financial statement certificates and withholding tax payment status reports, must still be submitted as before.
Applications for general funds will be accepted from the 25th to the 27th, with approvals completed in September, while special funds will be announced separately in early September.
Kim In-soo, director general of the province's economy and trade bureau, said, "We hope this funding support will serve as a genuine pillar of support for local SMEs." He added, "We will streamline administrative procedures, including simplifying documentation, to ensure swift support."
Meanwhile, South Gyeongsang Province provided a total of 734.3 billion won in development funds to 1,003 local SMEs in the first half of this year.
