Loan Support Up to 100 Million Won Per Academy Closed for More Than 5 Days

Ministry of Education, NongHyup, and Credit Guarantee Foundation Central Association Sign Business Agreement
Academies with Fewer Than 5 Regular Employees
Must Submit Closure Certificate

[Asia Economy Reporter Hyunju Lee] Small private academies that have closed due to the impact of the novel coronavirus infection (COVID-19) will be able to receive loans of up to 100 million KRW at low interest rates.

The Ministry of Education, NongHyup, and the Credit Guarantee Foundation announced on the 20th that they signed a business agreement for a special guarantee product supporting small business owners in the education service industry worth 45 billion KRW at the Government Seoul Office.

This agreement aims to support the management difficulties of academies with average annual sales of 1 billion KRW or less and fewer than five regular employees, targeting small academies and private tutoring centers that have closed for a total of five days or more following the education office's closure recommendation after February 4.

Each business can receive loans of up to 100 million KRW, with a term of one year, which can be extended annually up to five years. The interest rate is determined based on the transferable certificate of deposit (CD) rate on the loan execution date plus an additional 1.5%. The special guarantee coverage is 100%, and the guarantee fee rate is 0.5%.

Credit guarantee consultations, application document guidance, and submissions will be handled by NongHyup Bank, and academies wishing to receive financial support must submit closure certificates for their academies and tutoring centers.

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