Presided over the 36th Emergency Economic Countermeasures Meeting
Policy Finance Council newly launched
[부산=뉴시스] Reporter Won Dong-hwa = Busan City held the 36th Emergency Economic Countermeasures Meeting, and Busan Mayor Park Hyung-joon announced the results in the briefing room at City Hall. [email protected]
[부산=뉴시스]Reporter Won Dong-hwa = Busan City kicked off its feet to support small and medium-sized enterprises (SMEs) and small business owners who are facing a crisis due to an interest rate hike and prolonged economic slump.
On the 19th, Busan City held the 36th Emergency Economic Countermeasures Meeting, and Busan Mayor Park Hyung-joon announced the results in the briefing room at City Hall.
Lately, the delinquency rate and guarantee accident rate are rising. The delinquency rate increased from 0.29% as of December 2022 to 0.43% at the end of March this year, and the guarantee accident rate rose from 1.59% in June 2022 to 5.19% at the end of June this year.
Busan Mayor Park Hyung-joon said, “We decided that policy financial support was necessary to help small and medium-sized businesses and small business owners have enough time to manage their funds and repay them, and concentrate on normalizing their business to restore their ability to repay.”
The policy finance support measures prepared by the city of Busan are worth 714.5 billion won for a total of 14 projects. These are 9 projects in 5 areas of customized financial policy, and 4 projects in 3 areas were included in the normalization of business for small business owners.
The city cooperates with the Korea Credit Guarantee Fund and Busan Bank to provide a new 180 billion won ‘support fund for small and medium-sized enterprises to overcome local crises’ for small and medium-sized enterprises with high growth potential but difficulties in securing funds. Up to KRW 3 billion per company is provided to small and medium-sized enterprises in representative industries such as shipbuilding, automobiles, and molds, as well as promising start-up small and medium-sized enterprises. The guarantee fee rate is reduced by 0.4% for two years.
The period of repayment of working capital for small and medium-sized enterprises (SMEs) due by the end of this year will be extended by another six months. During the extension period, interest equivalent to 1.0% to 2.5% is also supported. The number of beneficiaries is between 1,206 and the size of the fund is 314.5 billion won.
In order to overcome the business crisis of small businesses, we strive to manage debt. Through a special debt reduction project, the loss ratio of small business owners who have agreed to repayment is greatly reduced and the burden is reduced to repay the debt in installments.
A liquidity support plan for small businesses has also been prepared. For the ‘Small Enterprise New Hope Conversion Fund’, ‘Local Win-Win Liquidity Support Fund for Small Businesses’, and ‘Win-Win Finance Support Fund for Small Businesses’, the target of support was expanded and new funds were newly established.
In order to cover the financial costs of small businesses, interest support will be expanded and the guarantee fee reduction support period will be extended. The interest rate for a total of 120 billion won, including the soft landing support fund for small businesses and the support fund for attracting the expo, will be increased from the previous 1.5% to a maximum of 2.5%.
For the small business management improvement project, the hope return business support and small business new wind change business are carried out. A project to create an innovation hub to support small business start-ups is also promoted, and 5 billion won from the government is invested annually for 5 years. Create a small business innovation hub cluster in connection with the Busan Youth Center and the Small Business Support Center.
The city decided to continue providing support for closing businesses so that small business owners who close their businesses can prepare a foundation to quickly stand up again.
The city decided to promptly solve the difficulties in the field by launching a new ‘Busan City Policy Finance Council’ in which commercial banks such as Busan, Kookmin, and Nonghyup, and policy finance sectors such as the Bank of Korea, Technology Guarantee Fund, and Busan Credit Guarantee Foundation participate.
Mayor Park said, “The launch of the Policy Finance Council is meaningful in supporting small and medium-sized enterprises and small businesses in Busan.” do,” he stressed.
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