Geoje and Tongyeong Special Disaster Areas: Lower Policy Loan Rates and Extended Repayment Periods for SMEs

Special Provision of Emergency Management Stabilization Funds and Special Maturity Extension
Disaster Fund Support Plan Approved

The Ministry of SMEs and Startups announced on October 5 that it had convened the "2026 1st Disaster Countermeasure Review Committee" and approved the "Disaster Fund Support Plan" for small business owners and SMEs in Geoje and Tongyeong, which were declared special disaster areas due to heavy rainfall damage. As a result, the government will offer significantly preferential support terms, such as interest rates, loan limits, and repayment periods for affected businesses.

This support plan was established to alleviate management difficulties faced by businesses in Geoje and Tongyeong, which were declared special disaster areas due to heavy rain on August 21, and to help restore daily life by promptly providing liquidity.

For businesses affected by the heavy rains that have received a disaster confirmation certificate, special provisions for "Emergency Management Stabilization Funds" will be applied, and "special maturity extensions" will be provided for existing policy fund loans. For small business owners, the emergency management stabilization fund (disaster) offers a maximum loan limit of up to 300 million won, with the interest rate reduced from the existing 2.0% to 1.5% for direct loans (1.4% for agency loans). The loan term will also be significantly improved to 10 years (with a 5-year grace period). For SMEs, the special provision for emergency management stabilization funds will reduce the interest rate from the existing 1.9% to 1.5%.

Additionally, for small business owners and SMEs in Geoje and Tongyeong who have received loans under the previous terms before the application of the special disaster provisions, the government will provide support by changing the terms to these preferential conditions. Furthermore, companies that have received existing policy fund loans will be eligible for a maturity extension.

Small business owners and SMEs who wish to apply for emergency management stabilization funds can report their damage to the relevant local government, obtain their disaster confirmation certificate, and then contact the Small Business Integrated Call Center or the SME Policy Fund Call Center to proceed with their application. Minister Lee Soyoung stated, "We will do our utmost to swiftly execute the funds, so that small business owners and SMEs in the heavy-rain-hit areas of Geoje and Tongyeong can reduce their financial burden and quickly restore normal business operations and management stability."

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