SME Mutual Aid Fund Sees 48% Increase in New Subscriptions

Subscription Relay Recommendation Event Launched

The Korea Federation of Small and Medium Businesses announced on August 18 that, as of the end of July this year, the number of new subscriptions to the SME Mutual Aid Fund reached 2,617, representing a 48% increase compared to the same period last year. This is because, amid ongoing hikes in corporate loan interest rates driven by recent base rate increases, the Mutual Aid Fund has maintained its loan interest rates since July of last year, helping to alleviate interest burdens for small and medium-sized enterprises (SMEs) and small business owners.

Korean Federation of Small and Medium Business

The SME Mutual Aid Fund, introduced in 1984 as a dedicated lending and mutual aid system for SMEs, serves as a management safety net for participating companies. Members can obtain unsecured, short-term operational loans of up to three times their paid savings balance, and, if real estate collateral is provided, the loan limit increases to up to ten times the balance. The interest rate burden can be further alleviated through interest subsidy support from local governments.

To further strengthen the business safety net for SMEs and small business owners, the Korea Federation of Small and Medium Businesses is conducting a "Mutual Aid Fund Subscription Relay Recommendation" event until September 30. Under this event, if an existing member recommends a new subscriber and the subscription is completed within the event period, both the referrer and the new member will each receive a KRW 50,000 Naver Pay gift certificate. Multiple and repeated participation is also allowed, such as recommending several businesses or making sequential recommendations after a new subscription.

This event has been organized to encourage existing member companies to recommend the Mutual Aid Fund to their business partners and neighboring companies, aiming to enhance resilience in overcoming unexpected business crises such as partner bankruptcies or closures. The goal is to expand the fund's fundamental "mutual assistance" function and build a stronger business safety net together.

Lee Chang-ho, Head of the Mutual Aid Division at the Korea Federation of Small and Medium Businesses, stated, "For SMEs and small business owners experiencing difficulties due to the recent downturn in domestic demand, the Mutual Aid Fund serves as a reliable pillar during crises," adding, "Through this relay recommendation event, we hope that more SMEs will receive tangible financial support within the safety net provided by the Mutual Aid Fund."

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