Businesses and independent merchants in the flood-ravaged regions of Geoje and Tongyeong will soon have access to emergency financial relief, including loans of up to 300 million KRW at slashed interest rates and extended maturities on existing policy loans, Korea.kr reported.
The Ministry of SMEs and Startups (MSS) announced the measures on October 5, following the approval of a specialized disaster relief plan during the “2026 1st Disaster Countermeasures Deliberation Committee” meeting held on September 28. The policy targets enterprises holding officially issued disaster confirmation certificates in Geoje and Tongyeong, both of which were designated as special disaster zones after historic torrential rains battered the southern coast.
Expanded Emergency Financing and Rate Cuts for Affected Merchants
Under the newly enacted disaster special exemptions, small business owners grappling with flood losses can secure emergency management stability funds capped at 300 million KRW, a significant increase from the standard 100 million KRW limit, Yonhap News Agency reported. The borrowing costs have also dropped sharply: direct loans now carry an annual interest rate of 1.5%, down from 2.0%, while agency-backed loans are set at 1.4%. The repayment framework has similarly expanded to a 10-year term featuring a five-year grace period, replacing the previous five-year term that included only a two-year grace period.
Medium-sized enterprises caught in the deluge benefit from comparable adjustments. Their emergency management stability funds now carry a reduced interest rate of 1.5%—down from 1.9%—with a maximum borrowing ceiling of 1 billion KRW, Yonhap News Agency noted. Crucially, businesses that received policy funds under older, less favorable terms prior to the implementation of these disaster exemptions will have their terms retroactively retrofitted to match the new preferential conditions.
Furthermore, businesses juggling legacy policy loans are entitled to special maturity extensions. For small businesses, this includes up to a one-year maturity extension and repayment grace, while medium-sized enterprises can secure up to a three-year maturity extension alongside a six-month repayment pause, according to Yonhap News Agency.
Geoje City Pours 1,500억 원 into Local Infrastructure Restoration
Additional allocations within Geoje’s supplemental budget target local infrastructure: 108억 원 for roads and village pathways, 80억 원 for apartment water and electrical supply repairs, 39억 원 for athletic facilities, 37억 원 for disaster waste removal, 30억 원 for agricultural and fishery infrastructure, and 27억 원 for water and sewage networks, Gyeongnam Sinmun reported.
Medium and Small Enterprises Follow Different Relief Schedules
Implementation schedules vary by enterprise type. Medium-sized enterprises saw the preferential conditions take effect on October 1, whereas small business support rolls out during the third week of October, Korea.kr reported.
To access the relief funds, business owners must first file damage reports with their local municipal governments to secure a disaster confirmation certificate. Once verified, small business owners can direct inquiries to the Small Enterprise and Market Service integration call center at 1533-0100, while medium-sized enterprises can consult the dedicated policy fund call center at 1811-3655, Yonhap News Agency reported.
“We will put absolute effort into the swift execution of funds so that small business owners and small-to-medium enterprises in the Geoje and Tongyeong regions who suffered flood damage can ease their financial burdens and promptly restore their daily lives and business stability,” Minister of SMEs and Startups Lee Soyoung stated, according to Korea.kr.
