출처 : SONOW
Gyeonggi Province announced a doubling of its special business fund from 50 billion to 100 billion won to support small and medium enterprises affected by US tariffs. Governor Kim Dong-yeon revealed that applications for the expanded 'Special Business Fund for Export Companies Affected by Tariff Imposition' will begin on September 29.
First Regional Government Initiative Expands After Initial Success
Gyeonggi Province became the first regional government in Korea to establish tariff relief funding in April, initially providing 50 billion won in support. To date, the program has assisted 90 companies with 39.9 billion won in financial support, demonstrating significant demand for such assistance.
The expansion decision was made during an emergency special support measures meeting chaired by Governor Kim following the Korea-US tariff negotiations conclusion on July 31. Despite the US reducing its proposed mutual tariff rate from 25% to 15%, the burden on domestic export companies remains substantial.
According to a Korea Enterprises Federation survey, 92% of domestic export companies indicated they cannot sustain tariff rates exceeding 15%, highlighting the continued need for government support despite the negotiated reduction.
Expanded Eligibility Includes Secondary and Tertiary Suppliers
The special business fund targets small and medium enterprises directly or indirectly affected by US tariff imposition. Eligibility extends beyond companies with direct US export records to include secondary and tertiary small suppliers that conduct business with US export companies.
This expanded scope reflects input from automotive export companies during Governor Kim's August 20 meeting at Pyeongtaek Port, where businesses requested lower policy barriers to access support. The inclusive approach recognizes the ripple effects of tariffs throughout supply chains.
The policy adjustment acknowledges that tariff impacts extend beyond direct exporters to affect entire industrial ecosystems, including small suppliers that may lack direct export relationships but depend on companies facing US market challenges.
Comprehensive Financial Support Package with Enhanced Terms
Companies can access loans up to 500 million won per enterprise under favorable five-year terms, including a one-year grace period followed by four years of equal installment repayments. The province provides fixed 2.5% interest rate subsidies on bank lending rates.
Applications submitted with Gyeonggi Credit Guarantee Foundation guarantees receive full guarantee fee exemptions and increased guarantee ratios from 90% to 95%. These enhanced terms significantly reduce financial barriers for affected companies seeking operating capital.
The loan structure provides breathing room for companies adjusting to tariff impacts while maintaining reasonable repayment schedules that accommodate business recovery timelines.
Streamlined Application Process Through Multiple Channels
Applications can be submitted through both offline and online channels for maximum accessibility. Offline applications are processed through 28 Gyeonggi Credit Guarantee Foundation branches and 4 sub-offices throughout the province.
Online applications utilize the Gyeonggi Province SME Development Fund Integrated Management System (g-money.gg.go.kr), providing convenient digital access for busy business operators. Detailed program information is available through official Gyeonggi Province website announcements.
The dual-channel approach ensures that companies can access support through their preferred method while maintaining consistent program standards and requirements across all application channels.
Strategic Response to Ongoing Trade Challenges
Choi Jeong-seok, Director of Gyeonggi Province's Regional Finance Division, expressed hope that this special business fund support expansion will help stabilize management for provincial SMEs and small suppliers affected by tariff imposition.
The program represents a proactive regional government response to international trade challenges that federal policies may not fully address. Gyeonggi Province's leadership in establishing tariff relief programs has created a model for other regional governments facing similar challenges.
The expanded funding demonstrates recognition that trade disputes create long-term impacts requiring sustained support rather than short-term emergency measures. The program's success metrics will likely influence similar initiatives in other Korean provinces facing export industry challenges.