In Tae-yeon, chairman of the Small Enterprise and Market Service, said the agency is in talks to further cut interest rates on emergency loans extended to merchants with stores inside Homeplus outlets.
In made the remarks on the 15th at a parliamentary audit of agencies under the Ministry of SMEs and Startups, held by the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee. Responding to a question from Rep. Cho Ji-yeon of the People Power Party, he said the agency is "actively discussing a further rate cut."
The ministry had already lowered the lending rates in July after criticism that Homeplus tenant merchants were making little use of the policy loans. As of the third quarter, the rate charged by the Korea SMEs and Startups Agency fell to 3.28% a year from 3.78%, while the Small Enterprise and Market Service rate dropped to 3.35% from 3.85%. The rates have since risen above those levels as deposit rates increased.
Cho noted that emergency management stabilization loans provided to small and midsize companies hit by the 2024 collapse of e-commerce platforms TMON and WeMakePrice carried a fixed rate of 2.5% a year. "Does it make sense to ask small merchants to pay 3.35%," she said. "You need to discuss a rate cut in earnest."
In replied that he shared that view. Lee So-young, minister of SMEs and startups, also said at the ministry's own parliamentary audit on the 7th of this month that she would examine ways to lower the policy loan rates for Homeplus tenant merchants.
As of last month, the Small Enterprise and Market Service and the Korea SMEs and Startups Agency had disbursed 12.5 billion won and 13.1 billion won in direct loans to Homeplus tenant merchants, respectively. Those amounts represent 25% and 33% of the funds allocated for each program.