Seongnam City Supports Small Business Owners with Special Guarantees Worth 13 Billion Won

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will provide special guarantee loans worth 13 billion KRW this year for small business owners with low income.

The special guarantee system supports small business owners who lack collateral to receive unsecured credit loans from commercial banks.

The city announced on the 8th that it has decided to contribute 1.3 billion KRW, which is 10% of the total project cost, to the Gyeonggi Credit Guarantee Foundation on the 10th to support the special guarantee project.

The maximum loan amount per person under this special guarantee is 50 million KRW.

The special guarantee targets small business owners who have lived in the Seongnam area and operated a store for more than two months.

This includes traditional market merchants, operators of small neighborhood businesses such as restaurants, supermarkets, laundries, beauty salons, and barbershops with four or fewer employees, as well as workers in mining, manufacturing, construction, and transportation industries with nine or fewer employees.

The city also supports the loan interest for small business owners who receive funds from banks through the special guarantee. This is a measure to help stabilize management.

Among the interest on the special guarantee loan, the city will pay the loan interest amount corresponding to 2% for two years. To this end, it has secured 364 million KRW in project funds for interest rate support (interest differential compensation) for small business owners under the special guarantee.

This content was produced with the assistance of AI translation services.