The Ministry of SMEs and Startups (Minister Han Sung-sook, hereafter referred to as the Ministry) announced on the 2nd that it has begun providing emergency management stabilization funds (disaster) to small business owners affected by drought in the Gangneung area.
Recently, as the Gangneung region experienced damages due to drought, there has been a consistent need for funding for damage recovery and business recovery. In response to on-the-ground demands, the Ministry secured additional emergency management stabilization funds (disaster) just ahead of the festive season.
According to the Ministry, as of late September, a total of 285 disaster small and medium enterprises (SMEs) certifications have been issued in relation to the Gangneung drought damage, amounting to a total of 10.2 billion won.
The emergency management stabilization fund (disaster) is a system that supports small business owners who urgently need funds due to natural or social disasters to continue stable operations. The loan limit is 100 million won, with a repayment period of 5 years (2 years grace period, 3 years installment repayment). The loan interest rate is applied as a fixed rate of 2.0%.
The fund applications can be submitted starting October 2nd. Small business owners wishing to receive support can obtain a disaster SME certification from the local government office at the city, county, district, township, or town office, and then submit it to a guarantee institution and bank. Afterward, a consultation and evaluation process will determine the support eligibility.