Only 22% of emergency policy funds for Homeplus suppliers disbursed

The Ministry of SMEs and Startups set aside 140 billion won ($103 million) in emergency policy loans for suppliers and tenants affected by the Homeplus crisis, but only about 22 percent of the funds were actually disbursed, newly released data shows.

According to documents submitted on Oct. 2 to Democratic Party of Korea lawmaker Kim Won-i of the National Assembly's Industry, Trade, Resources, SMEs and Startups Committee by the ministry and Homeplus, the total policy loan budget prepared for Homeplus suppliers and tenants from October last year through Sept. 20 this year came to 140 billion won.

The funds were allocated across three agencies under the ministry: 40 billion won through the Korea SMEs and Startups Agency, 50 billion won through the Korea Technology Finance Corporation, and 50 billion won through the Small Enterprise and Market Service.

Of that total, only 31.2 billion won was actually disbursed to eligible businesses, putting the execution rate at 22 percent. By agency, the Korea SMEs and Startups Agency disbursed 12.5 billion won, or 31.3 percent of its allocation; Kibo disbursed 6.3 billion won, or 12.6 percent; and the Small Enterprise and Market Service disbursed 12.4 billion won, or 24.8 percent.

The three agencies together processed 377 loans — reaching only 12.7 percent of the 2,968 suppliers and tenants affected as of September.

The ministry had already cut lending rates in July in response to criticism over the low uptake, reducing the Korea SMEs and Startups Agency rate from 3.78 percent to 3.28 percent and the Small Enterprise and Market Service rate from 3.85 percent to 3.35 percent. However, Kim said the disbursement rate remains sluggish.

"During the Tmon and WeMakePrice crisis in 2024, the emergency management stabilization loan rate for affected small and medium-sized enterprises was fixed at 2.5 percent annually, so the ministry needs to strengthen support for affected suppliers and tenants," Kim said. He added that the ministry should develop practical measures — such as helping businesses relocate or restart — by linking them to the Hope Return Package, a support program for small business owners.