On the 27th, the Ministry of Commerce, Industry and Energy announced that it will provide low-interest loans worth 150 billion won next year to small and medium-sized auto parts companies that will invest in future car conversions.
The Ministry of Commerce, Industry and Energy plans to provide up to 10 billion won in loans for funds needed for future investment in vehicle parts facilities, stock acquisitions and mergers and acquisitions (M&A), and research and development (R&D).
When a company receives a loan from a commercial bank, the government reviews and reduces the interest on the loan by up to 2 percentage points for up to eight years.
For example, small and medium-sized businesses that have received a loan for a future car conversion investment at 5% interest only have to pay 3%, excluding the government-backed 2% interest.
Funding applications can be submitted through the Korea Institute for Advancement of Technology by the 17th of next month. There are five banks: Woori Bank, Hana Bank, Korea Development Bank, Busan Bank and Kyongnam Bank.
Correspondent Changhyun Lee of Hellotti |
