Daegu City Leads Support for Restarting Entrepreneurs After Startup Failures

[Asia Economy Yeongnam Reporting Headquarters, Reporter Jucheol In] Daegu City announced on the 10th that it is implementing a support system for the re-advancement of entrepreneurs who have failed due to unavoidable circumstances and bankruptcy, giving them a chance to start anew.

The support targets local entrepreneurs within 7 years of re-establishment who are undergoing credit recovery procedures as sincere debtors, small debtors with debts under 30 million KRW, and those managing overdue payments.

The loan fund totals 3 billion KRW, with a limit of 100 million KRW per company, a maximum loan period of 5 years, and an interest rate of 1.3% to 2.2% for the first year.

Last year, the city supported 13 companies with 410 million KRW through the re-advancement support system for failed entrepreneurs. Since its introduction in 2017, a total of 23 companies have received 780 million KRW in funding. Entrepreneurs wishing to use the funds can apply at the Daegu Credit Guarantee Foundation branches.

Lee Seungho, Deputy Mayor for Economic Affairs of Daegu City, said, “We are helping re-established entrepreneurs to overcome failure and achieve successful re-starts by leveraging the valuable experience and capabilities gained from past failures.”

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