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Busan Metropolitan City Listens to Local Businesses Struggling from Delayed Korea–U.S. Tariff Negotiations, Expands Emergency Policy Fund Support

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will hold a field roundtable with the machinery and parts industry today (24th) at 12:00 p.m. at the main conference room of the Busan Machinery Industry Cooperative in Hwajeon-dong, Gangseo-gu.

This roundtable has been arranged to listen to the difficulties of the local machinery and parts industry caused by the U.S. imposition of 50% tariffs on steel and aluminum, the addition of 407 derivative products using steel and aluminum to the tariffed items, and the delay in follow-up actions from the Korea–U.S. tariff negotiations. The purpose is to seek practical support measures based on these on-site voices.

The roundtable will be attended by Mayor Park Heong-joon, Seong Gi-in, Chairman of the Busan Machinery Industry Cooperative, and about 30 representatives from the machinery and parts industry.

Through this meeting, the City will announce that it will provide an additional 50 billion KRW in operating funds for SMEs and 50 billion KRW in special funds for small businesses, while expanding the interest subsidy rate from the current 1.0–1.5% to 2.0%. This is intended to reduce high-interest burdens and lower capital-raising costs for local SMEs and small businesses.

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SME operating and management funds are available up to 500 million KRW per company (with a higher ceiling for local companies), with a maximum interest subsidy of 2%. Applications can be made through commercial banks upon receiving a recommendation letter from the Busan Economic Promotion Agency (☎ 051-728-8046).

The special fund for small businesses is available up to 200 million KRW per company, with a maximum interest subsidy of 2%. Inquiries can be made to the Busan Credit Guarantee Foundation (☎ 051-860-6600).

Through this, local SMEs and small businesses will be able to secure operating funds at lower effective interest rates, thereby strengthening management stability and mitigating financial market uncertainties.

Meanwhile, since August 27, the City has changed the SME support fund application cycle from twice annually (January and July) to monthly submissions, enabling companies to receive timely support when needed. It also abolished the rule limiting operating fund support to four times, allowing repeated support as needed.

Mayor Park Heong-joon stated, “The delay in Korea–U.S. tariff negotiations is deepening the hardships of the local steel industry, which is of great concern. I hope this policy fund will provide substantial help to local companies and small businesses suffering from financial difficulties ahead of Chuseok. We will continue to respond actively for the stability of people’s livelihoods and regional economic recovery.”

He added, “We will actively reflect today’s on-site voices and, through continued cooperation with the City, the Busan Economic Promotion Agency, the Busan Credit Guarantee Foundation, and the banking sector, continue to prepare tangible measures that local SMEs and small businesses can truly feel, so that under any circumstances, Busan will stand as your reliable partner.”