The Ministry of Trade, Industry and Energy announced on the 27th that it will provide low-interest loans worth 150 billion won next year to small and medium-sized auto parts companies investing in future car conversion.
The Ministry of Trade, Industry and Energy plans to provide up to 10 billion won in loans for funds necessary for future vehicle parts facility investment, equity acquisition 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 enterprises that received a loan for future car conversion investment at 5% interest only have to pay 3%, excluding the 2% interest supported by the government.
Applications for financial support 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 |