Daegu Urban Development Corporation Extends 12 Billion Won 'Mutual Growth Fund' by One Year... Selected Companies Eligible for Up to 500 Million Won in Loans for Three Years

Daegu Urban Development Corporation (President Jeong Myungseop) announced on June 5 that it has extended its 'Mutual Growth Fund' agreement with IBK Industrial Bank by one year, increasing the total size of the fund to 12 billion won and expanding the scope of support to include small and medium-sized enterprises (SMEs) engaged in Daegu's five major future industries.

The Mutual Growth Fund is a collaborative financial program in which the corporation deposits funds with the bank, and the interest income generated from these deposits is used to provide low-interest loans to local SMEs.

Daegu Urban Development Corporation

In the first round of the 2024 program, the corporation established a 10 billion won fund to support seven companies. For the second round, the support amount has been increased to 12 billion won, and the maximum support period has been extended from one year to up to three years. As a result, a total of 22 companies have received approximately 160 million won in interest reduction benefits so far, helping to ease the financial burden of local SMEs struggling amid the economic downturn.

Through this agreement extension, the range of eligible recipients has also been expanded. In addition to companies in the construction sector, startups, job-creating companies, and those addressing local depopulation, SMEs in Daegu's five major future industries—semiconductors, healthcare, robotics, future mobility, and ABB (AI, Big Data, Blockchain)—are now eligible for support.

Selected companies can receive loans of up to 500 million won for a maximum of three years, with a basic annual interest rate reduction of 1.73 percentage points. Furthermore, if they meet the bank’s specific preferential conditions, they may receive an additional interest rate reduction of up to 1.40 percentage points.

The Daegu Urban Development Corporation expects that, with the extension of the agreement and the expanded eligibility, local SMEs will be able to save more than 300 million won in interest annually.

Jeong Myungseop, President of Daegu Urban Development Corporation, stated, "By widening the scope of support to include Daegu’s five major future industries, we hope to provide tangible assistance for the growth of local SMEs and the development of new industries. We will continue to work closely with the local community to promote sustainable mutual growth."

This content was produced with the assistance of AI translation services.