Gyeonggi Housing and Urban Development Corp. (GH) announced Wednesday that its 30 billion won ($21.2 million) "GH mutual-growth fund" sold out within five months of its launch, drawing applications from 37 small and medium-sized enterprises in the province.
GH established the fund in March after signing an agreement with Woori Bank. Interest generated from the 30 billion won deposited with the bank is used to subsidize loan rates for eligible small and medium-sized enterprises — specifically, companies that have leased industrial land from GH in Gyeonggi Province. Each company can borrow up to 1 billion won and receives an interest rate reduction of 3.05 percentage points per year.
The fund has drawn praise as a model of public-private cooperation, creating a virtuous cycle in which interest income from a publicly established fund flows back to businesses as financial relief.
"The early sellout shows just how heavy the financial burden has been for companies on the ground, and at the same time proves that this support has served as a genuine catalyst," GH President Kim Yong-jin said.
fob140@heraldcorp.com
