South Korea's Ministry of Trade, Industry and Energy. [Photo=Ajunews DB]
South Korea’s Ministry of Trade, Industry and Energy said Tuesday it will subsidize up to 2 percentage points of loan interest through the end of next year for companies in steel, aluminum and copper, as well as related derivative products, to ease management burdens amid shifts in the global trade environment.
The ministry said export conditions have worsened and financing costs have risen as major countries strengthen protectionist measures. On April 21 (local time), aluminum and copper futures on the London Metal Exchange closed at $3,532 per ton and $6.04 per ton, up 49.5% and 26.2% from a year earlier, the ministry said.
To reduce financial costs and support business stability, the ministry said it signed agreements with five financial institutions, including Woori Bank, KB Kookmin Bank and Shinhan Bank, to create new loan products eligible for interest subsidies.
The program targets small and midsize companies with export performance in steel, aluminum, copper and related derivatives. It will cover part of the interest on loans used for facility investment, mergers and acquisitions, research and development, or working capital. The loan limit is up to 10 billion won per company. Small businesses can receive support equal to 2 percentage points of interest, while midsize firms can receive 1.5 percentage points, through the end of next year.
Applications will be accepted from Tuesday through May 21. The ministry said it will select recommended companies after evaluating submissions, followed by reviews by participating lenders before final loans are issued.
The ministry said export conditions have worsened and financing costs have risen as major countries strengthen protectionist measures. On April 21 (local time), aluminum and copper futures on the London Metal Exchange closed at $3,532 per ton and $6.04 per ton, up 49.5% and 26.2% from a year earlier, the ministry said.
To reduce financial costs and support business stability, the ministry said it signed agreements with five financial institutions, including Woori Bank, KB Kookmin Bank and Shinhan Bank, to create new loan products eligible for interest subsidies.
The program targets small and midsize companies with export performance in steel, aluminum, copper and related derivatives. It will cover part of the interest on loans used for facility investment, mergers and acquisitions, research and development, or working capital. The loan limit is up to 10 billion won per company. Small businesses can receive support equal to 2 percentage points of interest, while midsize firms can receive 1.5 percentage points, through the end of next year.
Applications will be accepted from Tuesday through May 21. The ministry said it will select recommended companies after evaluating submissions, followed by reviews by participating lenders before final loans are issued.
* This article has been translated by AI.
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