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Mayor Park Heong-joon: “Creating a City Where Businesses Can Invest with Confidence”… KRW 500 Billion in ‘Next Root Special Finance’ Support

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Busan Metropolitan City (Mayor Park Heong-joon) announced that today (the 12th) at 14:30 it will sign a business agreement for the “Busan Next Root Special Finance Support” program at the International Protocol Hall of City Hall.

Attendees at the signing ceremony will include Mayor Park Heong-joon, Jeong Hyeon-min, Standing Vice Chairman of the Busan Chamber of Commerce and Industry; Sim Hyeon-woo, Chairman of the Next Generation Entrepreneurs Club; Lee Jae-pil, Standing Director of the Korea Technology Finance Corporation; Chae Byeong-ho, Standing Director of the Korea Credit Guarantee Fund; and Kim Seong-ju, President of Busan Bank.

This agreement has been prepared to resolve financing difficulties faced by local small and medium-sized enterprises and to secure future growth engines for the regional economy by intensively supplying productive finance to companies with strong growth potential.

Through this agreement, Busan Metropolitan City together with the Busan Chamber of Commerce and Industry, the Next Generation Entrepreneurs Club, the Korea Technology Finance Corporation, the Korea Credit Guarantee Fund, and Busan Bank will establish a cooperative financial support system for regional companies.

Based on this cooperative framework, the city and its partners will create policy financing totaling KRW 500 billion for small and medium-sized enterprises and begin providing full-scale support to local companies.

Busan Metropolitan City will provide a 2.0 percent interest subsidy, while the Busan Chamber of Commerce and Industry and the Next Generation Entrepreneurs Club will introduce the financial support program to 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 Busan Bank will offer special contributions and preferential interest rates.

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

In particular, Busan Metropolitan City has raised the interest subsidy rate from 1.5 percent last year to 2.0 percent, significantly reducing the financial burden on businesses.

Repayment conditions are set at a three-year maturity. Companies may choose between a structure of a two-year grace period followed by one year of installment repayment or a three-year grace period followed by a lump-sum repayment, allowing them to select the option best suited to their financial operations and thereby improving financial flexibility and management stability.

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

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

Meanwhile, Busan Metropolitan City plans to further accelerate financial support that businesses can directly experience by expanding policy financing to a record-high KRW 2.133 trillion through a supplementary budget in order to address funding difficulties faced by small and medium-sized enterprises and small business owners and to revitalize the regional economy.

Mayor Park Heong-joon stated, “Recently, worsening external conditions such as instability in the Middle East have sharply increased oil prices and exchange rates, placing greater management burdens on regional companies,” adding, “Through this agreement, the city will work closely with financial and guarantee institutions to expand financial support that businesses can truly feel and create an environment where Busan companies can invest and grow with confidence, thereby strengthening Busan’s future competitiveness.”