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Busan Metropolitan City Strengthens Financial Support for Local Enterprises - Improvement of SME Development Fund and Establishment of Special Fund for Technological Innovation

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Busan Metropolitan City Mayor Park Heong-joon announced that the city will significantly improve and implement the “2025 Busan SME Financial Support Plan” to ease the financial difficulties and stabilize the management of local SMEs.

The key improvements include:

• ●The application cycle for the SME Development Fund will be changed from every even month (six times a year) to monthly, allowing companies to receive timely support when they need it.

• ●The regulation that limited working capital support to a maximum of four times will be abolished, enabling companies to receive the necessary funds regardless of the number of times they apply.

In addition, a “Special Fund for Technological Innovation” will be newly established to expand support for start-ups and venture companies with growth potential and to ensure smooth financing within the region.

• ●Through this special fund, companies can receive loans of up to 3 billion KRW for working capital. Within the limit of 800 million KRW per loan, the city will provide interest subsidies of 1.5% for the first year and 1.0% for the second to third years.

• ●Eligible applicants are start-ups and venture companies that meet the guarantee requirements of the Korea Technology Finance Corporation (KIBO) and have their headquarters or main business in Busan, falling into at least one of the following categories: innovative growth, technology start-up, or job creation.

• ●Applications for the Special Fund for Technological Innovation will be accepted by the Korea Technology Finance Corporation starting September 15. For inquiries, please contact the KIBO Busan Branch at 051-606-6500.

Through these improvements, Busan Metropolitan City expects to enhance the convenience of financing for local SMEs, reduce financial burdens, and contribute to strengthening corporate competitiveness and revitalizing the regional economy.

Furthermore, to alleviate the management burden of small business owners, the city will continue to promote special guarantee projects such as the “Hope-Link Credit Card” and “Overdraft Account.”

• ●The “Hope-Link Credit Card” provides an operating-expense-only credit card with a limit of up to 5 million KRW per person.

• ●The “Overdraft Account” provides a credit line of up to 5 million KRW, allowing for flexible use of funds. Both products can be applied for simultaneously, enabling combined guarantee support of up to 10 million KRW.

• ●The credit card also offers up to six months of interest-free installments and a 3% cashback benefit through the “Dongbaekjeon” point system, within an annual limit of 100,000 KRW.

• ●Eligible applicants are small business owners with business establishments in Busan, who have been in business for at least six months, with a NICE credit score of 595 or higher, and who meet one of the following conditions: annual sales of at least 12 million KRW or monthly sales of at least 3 million KRW over the past three months.

• ●Applications can be made via the Busan Credit Guarantee Foundation’s “Bojeung Dream” app for the credit card, and via the BNK Busan Bank mobile banking app for the overdraft account. For further details, contact the Busan Credit Guarantee Foundation at 051-860-6600 or BNK Busan Bank at 1588-6200 / 1544-6200.

Kim Bong-chul, Assistant Mayor of Digital Economy Office, stated, “Through these institutional improvements and the establishment of the Special Fund for Technological Innovation, companies will be able to secure funds when needed and reduce financial costs. We will continue to provide tailored support based on the characteristics of companies to create a stable management environment for them.”