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SMEs to Enjoy Over 3 Trillion Won in Support Funds, 4.2% Higher than Last Year
SME Funds
SMEs to Enjoy Over 3 Trillion Won in Support Funds, 4.2% Higher than Last Year
  • By Jack H. Park
  • December 23, 2014, 07:28
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From next year, policy funds totaling more than 3 trillion won (US$2.7 billion) will be carried out for small and medium-sized enterprises (SMEs), including 835 billion won (US$757 million) of new growth foundation funds for the companies at a growth stage.

According to the “2015 Policy Fund Management Plan for Loan Support for SMEs’ Facility Investment and Operating Funds” reported by the Small and Medium Business Administration (SMBA) and Small and Medium Business Corporation on Dec. 22, customized support for corporations at the growth stage and re-launching companies will be reinforced, and support for SMEs that contribute to employment expansion will be also increased.

The budget for SMBA policy funds next year is 3.026 trillion won (US$2.744 billion), 4.2 percent up from this year's 2.905 trillion won (US$2.644 billion).

In particular, this time’s policy funds focus on raising financial access for small and medium-sized businesses for growth taking the measures including exemption of joint guarantees without additional interest centered on the companies with big growth potential, and strengthening custom support by business life cycle.

The size of new growth foundation funds will be expanded to support small and medium businesses at the growth stage. The funds specialized for high growth companies and basic manufacturing companies will also be newly established.

The new growth foundation funds for this year will increase 23.5 percent to 1.047 trillion won (US$948.9 billion) from 835 billion won (US$758 million) last year. And, 280 billion won (US$253 million) in funds for high growth companies and 200 billion won (US$181 million) in funds for basic manufacturing companies will be established.

Supporting funds for relaunching companies will be created, which integrates similar types of funds for systematic support for companies at the last stage of business life cycle. The support funds consist of 30 billion won (US$27 million) for structural improvement, 99 billion won (US$90 million) for business transitions, and 70 billion won (US$64 million) to re-establish a business.