Mokpo City Supports Small Business Owners with Credit Loan Deposits and Interest Assistance

Starting Next Month, Up to 50 Million Won Special Guarantee and Interest Support Within 1% Per Company

Exterior view of Mokpo City Hall (Photo by Mokpo City)

[Asia Economy Honam Reporting Headquarters Reporter Jeong Hyeong-seok] Mokpo City announced on the 6th that it will support credit loan guarantees and interest for local small business owners who are experiencing great difficulties due to the double hardship of a prolonged economic recession and COVID-19.

The city will contribute 200 million KRW in special funds to the Jeonnam Credit Guarantee Foundation to establish a special guarantee fund exclusively for Mokpo citizens to support credit loans for low-credit small business owners.

Support will be provided with a guarantee rate of 100% for loans up to 30 million KRW and 90% for loans between 30 million and 50 million KRW, with a maximum of 50 million KRW per person. The guarantee period is five years, with a total guarantee amount of approximately 2 billion KRW.

Additionally, the city announced plans to support interest payments at an annual rate of up to 1% on loans up to 30 million KRW from financial institutions for small business owners and self-employed individuals affected by COVID-19.

To this end, the city has included the small business financial support project budget in the supplementary budget and submitted it to the Mokpo City Council. It plans to promptly proceed after obtaining approval at the extraordinary session held until the 18th.

Early next month, the city plans to announce the "Mokpo City Small Business Special Guarantee and Interest Subsidy Plan" on the city hall website. Small business owners wishing to apply can check the announcement details and apply through the Jeonnam Credit Guarantee Foundation to receive support.

A Mokpo City official stated, "We are preparing various measures to minimize the direct and indirect damage to our region caused by COVID-19 and to provide practical support to small business owners with limited resources," adding, "Although the difficulties are great, let us unite our strength and overcome this crisis together."

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