The Korean Government to Loan an Additional of KRW 800 Billion to Job-Creating SMEs
- Division
- 국제협력과
- Date
- 2017.08.09
- Writer
- 박강범
- File
- Headline
With the approval of a supplementary budget by the National Assembly on July 22, the Korean government plans to grant a total of KRW 800 billion to SMEs in the form of “SME Policy Grants.” Of the KRW 800 billion, KRW 200 billion will be loaned to SMEs investing in facilities, KRW 200 billion to SMEs experiencing financial difficulties, and KRW 400 billion to start-ups.
“SME Policy Grants” are low-interest government loans granted to SMEs with superior technical expertise that suffers from limited access to bank loans. This loan program is implemented by the Ministry of SMEs and Startups (the “MSS”) and the Small and Medium Business Corporation (the “SBC”)
The MSS and the SBC plan to put a high priority on SMEs that create high-quality jobs as the supplementary budget is aimed at encouraging SMEs to create jobs and improve the quality of jobs created.
When screening SME applicants for the program, the MSS and the SBC will give preferential consideration to SMEs with plans to hire employees. When evaluating the applicants, the MSS and the SBC will also assess the “quality” of jobs in terms of wages and employee benefits.
In addition, if an SME receives a policy loan and hires new employees within three months, the MSS and the SBC will refund the interests paid by the company. 0.1% will be refunded per employment, up to a maximum of 2.0%. However, interests may be refunded only if the company maintains the employment of the new recruits for six months after receiving the loan.
“SME Policy Grants” are low-interest government loans granted to SMEs with superior technical expertise that suffers from limited access to bank loans. This loan program is implemented by the Ministry of SMEs and Startups (the “MSS”) and the Small and Medium Business Corporation (the “SBC”)
The MSS and the SBC plan to put a high priority on SMEs that create high-quality jobs as the supplementary budget is aimed at encouraging SMEs to create jobs and improve the quality of jobs created.
When screening SME applicants for the program, the MSS and the SBC will give preferential consideration to SMEs with plans to hire employees. When evaluating the applicants, the MSS and the SBC will also assess the “quality” of jobs in terms of wages and employee benefits.
In addition, if an SME receives a policy loan and hires new employees within three months, the MSS and the SBC will refund the interests paid by the company. 0.1% will be refunded per employment, up to a maximum of 2.0%. However, interests may be refunded only if the company maintains the employment of the new recruits for six months after receiving the loan.