The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced on the 13th an additional supply plan for policy finance for SMEs and small business owners reflecting the first supplementary budget for 2025.
The Ministry of SMEs and Startups announced that it will provide a total of 30.7 trillion won in policy finance to small and medium-sized enterprises and small business owners in 2025 by adding 4.2 trillion won in supplementary budget to this year's policy finance main budget supply of 26.5 trillion won.
◆ Major supplementary budget policy financing support for small and medium-sized enterprises and small business owners
- In order to enhance the ability to respond to domestic and external uncertainties due to U.S. tariff measures and sluggish domestic demand, an additional 1.7 trillion won in policy financing will be provided to small and medium-sized enterprises.
<Small and Medium Enterprise Policy Fund>
First, we will supply 0.5 trillion won in policy funds for small and medium-sized enterprises, including ▲ 0.1 trillion won in emergency funds for responding to trade risks, ▲ 0.3 trillion won in emergency management stabilization funds, and ▲ 0.1 trillion won in new market entry support funds.
The Emergency Fund for Trade Risk Response is a fund newly established this year for a limited time to broadly support small and medium-sized enterprises that are engaged in industries related to US product tariffs or have a high proportion of US exports and are experiencing management difficulties. Considering that it is a temporary emergency fund, the repayment period for operating funds is 6 years, which is one year longer than other funds, and the maturity can be extended by one year upon request by the company. The loan interest rate is 0.3%p lower than the base rate for small and medium-sized enterprise policy funds.
The Emergency Management Stabilization Fund has been increased by KRW 300 billion to provide substantial support to small and medium-sized enterprises suffering from management difficulties due to internal and external uncertainties or small and medium-sized enterprises affected by the Gyeongbuk and Gyeongnam wildfires. Up to KRW 1 billion (within KRW 1.5 billion over 3 years) can be provided for operating funds, and the loan interest rate is 0.5%p higher than the policy fund base rate.
The new market entry support fund has been increased by KRW 100 billion to enable small and medium-sized enterprises to explore new markets or diversify export destinations in the rapidly changing global trade environment. Up to KRW 1 billion in operating funds and up to KRW 3 billion in facility funds can be supported, and the loan interest rate is based on the policy fund base rate.
<Technology Guarantee Fund>
The Technology Guarantee Fund has established a special guarantee for overcoming the crisis caused by changes in the trade environment through this supplementary budget to support companies directly and indirectly affected by the US tariff measures. Liquidity of 1.2 trillion won will be supplied quickly through the newly established special guarantee.
The special guarantee support target is SMEs that are directly or indirectly affected by the impact of US tariffs and are in crisis industries, or excellent technology companies that are in opportunity industries. The guarantee ratio and guarantee fee rate are differentially and preferentially supported depending on the support target. For example, SMEs that are directly affected can receive guarantee support of up to 95%, and SMEs that are indirectly affected can receive guarantee support of up to 90%, and the guarantee fee rate can be reduced by up to 0.4%p for the direct type and up to 0.3%p for the indirect type.
- In order to further strengthen the financial safety net for small business owners who are in the blind spot of private finance, we will expand the supply of policy finance for small business owners by 2.5 trillion won.
<Small Business Policy Fund>
In order to support the management stability and growth of small business owners, 0.5 trillion won in small business policy funds will be supplied, including ▲ 0.14 trillion won in general management stabilization funds, ▲ 0.24 trillion won in credit-vulnerable funds, and ▲ 0.12 trillion won in innovation growth promotion funds.
All small business owners can apply for the general management stabilization fund regardless of their business history. Operating funds are supplied through proxy loans through commercial private banks, and the amount has been increased by 140 billion won compared to this year's original budget. The loan limit is up to 70 million won over 5 years, and the loan interest rate is 0.6%p higher than the small business policy fund base rate.
The credit-vulnerable fund is a fund to support vulnerable small business owners with low and medium credit (NCB credit score of 839 or lower) who have difficulty in obtaining loans from financial institutions. It has been increased by 240 billion won compared to the original budget to strengthen the financial safety net. Up to 30 million won will be supported over 5 years through direct loans from the Small Business Market Promotion Agency. The loan interest rate is 1.6%p added to the policy fund base rate.
The Innovation Growth Promotion Fund is a fund that supports the sustainable growth of small business owners with high growth potential, and has been increased by 120 billion won compared to the original budget. The support type is divided into general and innovative types, and is supported in the form of direct loans from the Small Business Market Promotion Agency.
Operating funds can be supported up to KRW 100 million for the general type and up to KRW 200 million for the innovative type for 5 years, and facility funds can be supported up to KRW 500 million for the general type and up to KRW 1 billion for the innovative type for 8 years. The loan interest rate is 0.4%p added to the policy fund base rate.
<Local Credit Guarantee Foundation>
In order to resolve management difficulties of small business owners and support small business owners affected by wildfires in Gyeongbuk and Gyeongnam, an additional 2.0 trillion won in new guarantees from regional credit guarantee foundations will be supplied. In addition to the 12.2 trillion won in new guarantees supplied in this year’s original budget, a total of 14.2 trillion won in new guarantees will be supplied this year to help small business owners recover their livelihoods.
◆ Future schedule
Considering the urgent need for liquidity for small and medium-sized enterprises and small business owners, the Ministry of SMEs and Startups plans to supply this supplementary budget policy financing through a rapid execution system.
For the SME policy funds reflected in this supplementary budget, applications can be made from May 14th through the SME Promotion Agency website , and the new normal risk response emergency fund established this year will be operated in a rolling application manner. Applications for the SME policy funds can be made on the SME Promotion Agency website . The direct loan method, the Credit Vulnerable Fund and the Innovation Growth Promotion Fund, will begin accepting applications on June 2nd, and the proxy loan method, the General Management Stabilization Fund, will begin accepting applications on July 1st. Detailed explanations and application procedures for the SME policy funds and the SME policy funds can be found in the loan plan announcement for each policy fund on the SME Ministry website .
Other guarantee products are supported year-round starting May 2nd, and the Technology Guarantee Fund can be applied for by visiting a digital branch (Customer Center 02-1544-1120), and regional credit guarantees can be applied for by visiting one of the 17 regional credit guarantee foundations or through a non-face-to-face app (Guarantee Dream).
- See more related articles
You must be logged in to post a comment.