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Busan Launches KRW 500 Billion Financial Support Program to Foster Regional Anchor Companies

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will sign a business agreement today (March 3) at 11:00 a.m. in the City Hall International Protocol Room for the “Busan–Yeongnam Region Anchor Company Fostering Support” initiative.

The signing ceremony will be attended by Mayor Park Heong-joon; Yang Jae-saeng, Chairman of the Busan Chamber of Commerce and Industry; Lee Sang-chang, Standing Director of the Korea Technology Finance Corporation; Chae Byung-ho, Standing Director of the Korea Credit Guarantee Fund; Lee Ho-sung, President of Hana Bank; and representatives of local companies.

This agreement has been prepared to resolve financial difficulties faced by local SMEs and to systematically foster companies with high growth potential. Participating institutions include Busan Metropolitan City, the Busan Chamber of Commerce and Industry, the Korea Credit Guarantee Fund, the Korea Technology Finance Corporation, and Hana Bank, which will establish a cooperative framework to provide financial support to local businesses.

Based on this cooperation system, the City, together with the Busan Chamber of Commerce and Industry, the Korea Technology Finance Corporation, the Korea Credit Guarantee Fund, and Hana Bank, will create and provide a total of KRW 500 billion in SME policy funds to local companies in earnest.

Under the agreement: the City will provide a 2.0 percent interest subsidy; the Busan Chamber of Commerce and Industry will promote the financial support program to its member companies and recommend eligible firms; the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund will provide credit guarantees based on contributed funds; and Hana Bank will offer special contributions and preferential interest rates.

Up to KRW 3 billion will be provided per company, and the interest subsidy support limit is set at KRW 800 million to ensure that more companies can receive practical financial benefits.

In particular, the City has raised the interest subsidy rate from 1.5 percent last year to 2.0 percent this year, significantly easing the burden on businesses.

The repayment terms are three years, with companies able to choose either a two-year grace period followed by one year of installment repayments, or a three-year grace period with a lump-sum repayment at maturity, depending on their financial management needs, thereby enhancing management stability.

Through this agreement, the City plans to strengthen cooperation with financial and guarantee institutions and actively identify promising companies with strong technological capabilities and growth potential, fostering them into anchor companies representing Busan and the Yeongnam region.

Through these efforts, the City aims to enhance the competitiveness of the regional industrial ecosystem and establish a virtuous cycle leading to expanded investment and job creation by local companies.

Meanwhile, last year (2025), the City provided KRW 2.033 trillion in policy funds to address management difficulties faced by SMEs and small business owners and to revitalize the local economy. This year, through the formulation of a supplementary budget, the City plans to expand the scale of policy funding support beyond last year’s level.

Mayor Park stated, “Last year, Busan’s SME exports reached an all-time high of USD 8.44 billion, and the Busan economy continues its growth trajectory. We will further strengthen financial support so that these achievements can extend to local SMEs on the ground. Through today’s agreement, the City and financial and guarantee institutions will work closely together to create an environment where businesses can invest and grow with confidence, and to make Busan a central city leading the Yeongnam regional economy.”