If large and small companies carry out a joint investment project in the United States going forward, they will be able to receive up to 2 billion won in government funding. The size of win-win financing, such as low-interest loans provided to small partner companies based on funds put up by major corporations in industries including autos and steel, will expand from 1 trillion won this year to more than 1.7 trillion won.
Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, held an economic ministers' meeting on the 21st and announced a "win-win growth strategy for large and small companies."
Until now, the government has provided up to 1 billion won over three years when large and small companies made joint overseas entries through mid- to long-term projects. Under the new measures, support for entries into the United States will double to up to 2 billion won, with an additional 20 billion won in guarantees linked. For entries into regions other than the United States, support will also be expanded to up to 1.5 billion won.
The win-win financing program, in which large corporations and the financial sector provide funds, and guarantee institutions link support to partner companies through ▲ low-interest loans ▲ issuance of guarantees ▲ corporate bond offerings, will also be expanded significantly.
In the auto industry, the scale of win-win financing that Hyundai Motor and the financial sector, including Kookmin Bank and Woori Bank, provide will increase from 1 trillion won last year to 1.3 trillion won this year. This includes 200 billion won in low-interest loans through the Korea Credit Guarantee Fund (KODIT), 225 billion won in corporate bond issuance, and 870 billion won in guarantee issuance through the Korea Trade Insurance Corporation.
In the steel industry, POSCO and Industrial Bank of Korea (IBK) will each grant 5 billion won and 15 billion won, respectively, to supply 400 billion won in K-SURE guarantees. POSCO International, an eco-friendly energy corporation, will also grant 1 billion won to support 15 billion won in KODIT guarantees.
When large corporations grant funds to the trade insurance fund, a new tax credit will be introduced to deduct a portion of the contributions from corporate taxes. Deductions will be 10% for the purpose of supporting small companies and 5% for the purpose of supporting mid-sized companies through the end of 2028.
The Korea Federation of Small and Medium Business Cooperatives will be given the authority to request consultations on transaction terms when entering into group contracts with large corporations. Acts necessary for negotiations will be recognized as exceptions to collusion rules.
Sanctions for the theft of small companies' technology will also be strengthened. Administrative sanctions will be expanded from the existing corrective recommendation to include corrective orders and demerit points, and a maximum penalty surcharge of 5 billion won will be imposed for serious violations.
A government official said, "We plan to establish a 'public-private joint win-win cooperation review meeting' chaired by the president, with the government, the Korea Commission for Corporate Partnership, major large corporations and partner small companies in attendance, to review the implementation tasks."