180 billion won loan program for H2; IBK-linked firms to get additional rate cut, preferential eligibility expanded
Daejeon's small-business development fund program launches Monday. The initiative expands both the scale of general business stabilization loans and the range of companies eligible for preferential interest rates.
Daejeon city announced Monday it will provide loan support through its "2026 Second-Half Small and Medium-Sized Enterprise Development Fund" to ease cash-flow difficulties and stabilize operations for local small and medium-sized enterprises (SMEs).
The total support package amounts to 180 billion won ($122 million), with the general business stabilization fund — the most in-demand category — raised by 20 billion won from the first half to 100 billion won.
The breakdown by fund category is as follows: 100 billion won in general business stabilization loans for day-to-day operations; 40 billion won in region-specific guarantee loans developed in partnership with the Korea Credit Guarantee Fund, Woori Bank and Hana Bank; 25 billion won in startup and competitiveness-enhancement loans for site acquisition and facility investment; and 15 billion won in purchase-condition production support loans for raw material procurement and product manufacturing.
Starting in the second half, the city also broadened eligibility for preferential interest rates by adding two new categories: "Nanum Myeongmun" companies — firms recognized for large-scale charitable giving — and businesses certified as family-friendly by the Ministry of Gender Equality and Family.
In addition, following an MOU signed with Industrial Bank of Korea on Monday, July 20, companies that apply for business stabilization loans through Industrial Bank of Korea will receive an additional interest rate reduction of up to 1 percentage point.
Businesses wishing to apply can do so online through the website of the Daejeon Jobs and Economy Promotion Agency.
Kwon Gyeong-min, director of the city's enterprise support bureau, said the city expanded the scale and preferential benefits of the program so that more companies could access financing on favorable terms in the second half, building on the results of the first-half support. "We will continue to pursue effective financial support policies to foster the growth of local SMEs and invigorate the regional economy," he said.
kwonhl@heraldcorp.com
