The Korea Federation of Small and Medium Enterprises announced on the 17th that it has improved the process for small and medium-sized enterprises and small business owners to join the small and medium business mutual fund and obtain loans remotely.
With this reform, users can now join the mutual fund and apply for loans through simple authentication methods such as Naver, Kakao, and Toss without the need for a separate bank visit. Previously, business owners had to visit financial institutions in person to obtain a joint certification, making the process cumbersome.
The small and medium business mutual fund is a financial resource created by combining contributions from small and medium enterprises with government contributions. Using these funds, small and medium enterprises can utilize credit for bills, promissory notes, and operating funds loans.
Based on the balance of paid contributions, the mutual fund allows for credit loans of up to three times the average 6% interest rate according to credit ratings, while those with insufficient limits can obtain real estate secured loans at a 4.5% interest rate up to ten times the balance of contributions. Additionally, local governments provide interest support of up to 3%, reducing the interest burden.
Lee Chang-ho, head of the KBIZ Mutual Fund Division, noted, "We will actively improve the system to provide practical financial support to small and medium-sized enterprises and small business owners who are struggling due to prolonged domestic downturns and worsened external conditions."