Busan City said on the 27th that it will implement a comprehensive support package to reduce management burdens for local corporations struggling with the recent surge in exchange rates.
The package, which takes effect today, consists of three pillars: emergency liquidity supply, sector-specific tailored support, and support for becoming export corporations.
First, Busan City will newly allocate a total of 100 billion won in "exchange rate care special funds" for small and medium-sized corporations with verified damage from the high exchange rate. It will provide up to 800 million won per company (1 billion won for designated local prestigious corporations) and offer a 2% interest subsidy for three years. Through this, the city plans to ease short-term liquidity burdens caused by exchange rate fluctuations. To apply, obtain a letter of recommendation from the Busan Economic Promotion Agency Project (BEPA) and submit it to 14 commercial banks.
To ease the financial burden on export corporations, trade finance support will also be expanded. Starting next year, support for export insurance premiums will be increased to 700 million won, and support for credit guarantee fees will be raised to 300 million won. In addition, support areas for trade insurance and guarantees within the export voucher program will be expanded from the current eight to nine.
Tailored support by industry will also be strengthened. For small and medium-sized shoe manufacturing corporations, 90% of export logistics costs will be covered, capped at 2 million won per corporation (up to 10 companies). In addition, support will be expanded to enable joint purchases of raw materials by industry. The city plans to subsidize actual costs incurred in the process, such as customs clearance and transportation fees.
Park Heong-joon, the Busan mayor, said, "I hope this comprehensive support package will provide practical help so corporations can withstand the crisis and leap forward again," and added, "We will create an environment where corporations can feel at ease and focus on management."