Gwangju City to Support 20 Billion Won in Special Guarantee Loans for Youth Startups Starting from the 2nd

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 1st that starting from the 2nd, it will implement a special youth startup guarantee worth 20 billion KRW for young entrepreneurs struggling to secure startup funds.

This year's special youth startup guarantee involves Gwangju Credit Guarantee Foundation and seven financial institutions to promote startups among local youth and establish a growth foundation.

Loans of up to 50 million KRW will be supported for companies within 7 years of establishment and aged 39 or younger. A fixed interest rate of 2.6% applies for a one-year lump-sum repayment, and an average variable interest rate of 2.8% applies for a 5-year installment repayment.

To actively support young entrepreneurs who have sufficient business potential but face difficulties in securing capital, the eligibility period has been expanded from companies within 5 years of establishment to those within 7 years.

Additionally, one more financial institution has joined compared to the previous year, and loan interest rates have been reduced by 0.2 to 0.4 percentage points.

The city will contribute 2 billion KRW to the Gwangju Credit Guarantee Foundation for youth startup funds, and the foundation will provide loan guarantees worth 20 billion KRW, which is ten times the contribution amount.

The banks participating in the startup fund loans are Gwangju Bank, KB Kookmin Bank, IBK Industrial Bank of Korea, NH Nonghyup Bank, Woori Bank, Hana Bank, and Shinhan Bank. These banks will help reduce the financial burden on entrepreneurs by offering low-interest loans and contribute to creating a startup ecosystem in Gwangju.

Youth entrepreneurs wishing to apply for startup fund loans can obtain a special guarantee certificate from the Gwangju Credit Guarantee Foundation and apply at any of the seven participating banks.

Lee Kyung, Director of Enterprise Development at the city, said, “We hope that the special youth startup guarantee will contribute to securing commercialization funds and strengthening competitiveness for young entrepreneurs with creativity and technology in the region, and become a great driving force to revitalize the local economy.”

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