GH's 'Mutual Growth Fund' for SME Loan Interest Support Fully Subscribed

The 30 billion won 'GH Mutual Growth Fund' established by Gyeonggi Housing and Urban Development Corporation (GH) has been fully depleted within just five months of its launch, with a total of 37 small and medium-sized enterprises (SMEs) in the province applying enthusiastically.

The Mutual Growth Fund was created after GH signed an agreement with Woori Bank in March and deposited 30 billion won. The interest generated from this deposit is used to lower loan interest rates for SMEs. The support is available to provincial SMEs that have purchased or leased industrial sites from GH. Each company is eligible for a loan limit of up to 1 billion won, with a reduction in the interest rate by 3.05 percentage points per year.

Gyeonggi Housing and Urban Development Corporation

This fund is being highlighted as a best practice, as it creates a virtuous cycle in which the interest income from a publicly established fund is returned as a resource to reduce financing costs for businesses, allowing the public and private sectors to grow together.

An Deokgon, CEO of Renosoft, an IT company based in Pangyo, expressed gratitude by saying, "With the support of the Mutual Growth Fund, we were able to substantially reduce our financing costs. The money we have saved has given us great strength to reinvest in R&D and secure our company's competitiveness."

Kim Yongjin, President of GH, commented, "The rapid sellout of the Mutual Growth Fund not only demonstrates the significant financial burden felt by companies on the ground, but also proves that this support served as a practical catalyst. We will continue to listen closely to the voices of businesses and seek out effective mutual growth models that help local SMEs in the province grow together with GH."

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