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Busan Metropolitan City Holds Meeting on Rapid Supply of Working Capital for SMEs… All-Out Effort to Ensure Timely Support Through Expanded Policy Financing

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Busan Metropolitan City, led by Acting Mayor Kim Kyung-duk, announced that it held a meeting with related organizations on May 8 at 2:00 p.m. in the conference room on the 7th floor of City Hall to discuss measures for the rapid supply of expanded SME working capital support.

The meeting was organized to support the stable management of local SMEs in response to growing external economic uncertainties, including the prolonged conflict in the Middle East, high exchange rates, and rising oil prices.

Attendees included the President of the Busan Economic Promotion Agency, as well as executive vice presidents and headquarters directors from major financial institutions, including BNK Busan Bank, Hana Bank, KB Kookmin Bank, IBK Industrial Bank of Korea, and Woori Bank. Participants discussed ways to accelerate the supply of policy financing and strengthen financial support for SMEs.

Busan Metropolitan City explained that worsening business conditions for local SMEs, driven by rising international oil prices caused by the prolonged Middle East conflict, increased exchange-rate volatility, and instability in financial markets, have led to growing demand for funding.

According to the “2026 Second Quarter Business Survey Index (BSI) for the Manufacturing Industry in Busan” conducted by the Busan Chamber of Commerce and Industry, local companies identified rising raw material and energy costs (43.3%), increased exchange-rate volatility (31.7%), and slowing consumption recovery (10.5%) as major management risk factors.

In response, Busan Metropolitan City has additionally allocated KRW 500 billion in SME working capital support, expanding the total scale to KRW 1.368 trillion, the largest level in the nation.

In addition, for SME working capital loans maturing between April and December this year, the city plans to extend repayment maturity by up to six months and provide additional interest subsidy support during the extension period.

• ●Interest subsidy support: 776 companies, approximately KRW 282.4 billion

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At the meeting, Busan Metropolitan City requested active cooperation from major financial institutions to ensure the rapid on-site supply of the expanded policy financing, including expedited loan screening and execution procedures, priority support for local SMEs, and expanded preferential interest rates.

The city also plans to strengthen its cooperative framework with major financial institutions to facilitate smoother distribution of the expanded working capital support to local SMEs.

Furthermore, Busan Metropolitan City will continue to promote customized financial support measures aimed at stabilizing the management of local SMEs experiencing difficulties due to external uncertainties.

Acting Mayor Kim Kyung-duk stated, “We will work closely with financial institutions to ensure that the expanded working capital support is supplied in a timely manner to businesses in need,” adding, “Busan Metropolitan City will continue to do its utmost to strengthen policy support so that local SMEs can maintain stable business operations without being affected by external uncertainties.”