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Busan Metropolitan City to Provide KRW 1.368 Trillion in Working Capital Loans for SMEs, the Largest Scale Nationwide… Supporting Business Stability and Liquidity

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Busan Metropolitan City, led by Acting Mayor Kim Kyung-duk, announced that it will begin supplying a total of KRW 1.368 trillion in working capital loans for SMEs starting in early May, the largest scale nationwide and expanded by KRW 500 billion from the previous level through a supplementary budget, in response to increasing management burdens on local companies caused by prolonged conflicts in the Middle East and growing external uncertainties.

The City plans to use this expanded supply of working capital loans to ease corporate cash flow shortages caused by sharp exchange rate fluctuations and support SMEs in continuing stable business operations.

Companies wishing to receive support may obtain a recommendation letter after review by the Busan Economic Promotion Agency (☎051-728-8046) and submit it to one of the 14 partner banks.

The partner banks are BNK Busan Bank, Hana Bank, IBK Industrial Bank of Korea, KB Kookmin Bank, Woori Bank, Shinhan Bank, BNK Kyongnam Bank, NongHyup Bank, iM Bank, Suhyup Bank, KDB Korea Development Bank, SC First Bank, MG Community Credit Cooperatives, and Citibank Korea.

In addition, for companies using working capital loans with loan maturities due within 2026, the City plans to defer principal repayment for six months and provide interest subsidy support ranging from 1.0 percent to 2.5 percent during the deferment period to reduce interest burdens on businesses.

The City also plans to cooperate with the Busan-Ulsan Regional Headquarters of the Korea Federation of SMEs and BNK Busan Bank to establish a specialized financial support program dedicated to joint raw material purchases and create policy funds totaling KRW 100 billion.

Under the program, the City will provide a 2.0 percent interest subsidy, the Busan-Ulsan Regional Headquarters of the Korea Federation of SMEs will promote joint raw material purchases, and BNK Busan Bank will offer preferential interest rates.

The support limit is up to KRW 800 million per company, and up to KRW 1 billion for Prestigious Local Companies.

In particular, the City has raised the interest subsidy rate from the previous 1.5 percent to 2.0 percent to reduce corporate burdens.

Meanwhile, to support local companies struggling with changes in global economic conditions, the City has already established and supplied KRW 200 billion in special funds for global risk response and KRW 200 billion in special exchange rate care funds. It is also providing KRW 800 billion in funds for small business owners to support management stability and revitalize the local economy.

According to a Busan Chamber of Commerce and Industry press release dated April 23, the major business risks in the first half of the year were identified as rising raw material and energy costs (43.3 percent), increased exchange rate volatility (31.7 percent), and sluggish consumption recovery (10.5 percent), highlighting the need for stronger institutional responses such as financial support.

Further details can be found by searching “SME Financial Support Plan” on the Busan Metropolitan City website at busan.go.kr under Busan News > Announcements > Public Notices.

For inquiries, SMEs may contact the Busan Economic Promotion Agency (☎051-728-8046), and small business owners may contact the Busan Credit Guarantee Foundation (☎051-860-6600).

The City expects the expanded supply of working capital loans to alleviate corporate management burdens and strengthen the foundation for stable regional economic operations.

In addition, it plans to further strengthen field-oriented communication administration by closely listening to voices from business sites and promptly reflecting them in policy.

Kim Bong-cheol, Assistant Mayor of Digital Economy Office, stated, “Considering the increased management burdens on companies caused by growing external uncertainties, we have expanded financial support,” adding, “We will continue to closely monitor economic conditions and actively provide timely policy funds so that companies can focus on stable business operations.”