Jeonbuk Province Supports Special Guarantee for Manufacturing Companies' Special Business Stabilization Funds

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Jeonbuk Province announced on the 7th that it has signed a business agreement with Jeonbuk Credit Guarantee Foundation (Chairman Kim Yong-mu, hereinafter Jeonbuk Shinbo), Jeonbuk Bank, NongHyup Bank, Industrial Bank of Korea, and Jeonbuk Economic and Trade Promotion Agency (hereinafter Promotion Agency) to provide a special management stabilization fund guarantee worth 30 billion KRW starting from the 8th for manufacturing companies experiencing management difficulties due to direct or indirect damage caused by COVID-19.

This special guarantee support is an emergency measure recognizing the seriousness that if operational disruptions continue for material and component manufacturing companies due to the contraction of trade such as imports and exports caused by COVID-19, the economy of the Jeonbuk region could be shaken to its roots.

The ‘Special Management Stabilization Fund’ to be supported this time is highly exceptional compared to nationwide standards, as Jeollabuk-do will compensate for the 2% interest difference (interest subsidy) over five years, allowing companies to bear an actual loan interest rate of about 1% per annum, with loans supported up to a maximum of 200 million KRW per company.

The target recipients of the ‘COVID-19 Manufacturing Industry Special Management Stabilization Fund Support Guarantee’ are companies that have suffered direct or indirect damage due to COVID-19, with a business history of three years or more and a credit rating of grade 6 or higher (grades 1 to 6). Unlike existing guarantee systems, the credit rating requirement has been lowered to reduce the entry barrier for companies.

Additionally, companies involved in COVID-19 related import/export, those with a sales decrease of 10% or more, and companies that experienced shutdowns due to confirmed COVID-19 cases or self-quarantined individuals are eligible for support.

Kim Yong-mu, Chairman of Jeonbuk Shinbo, stated, “Although the full guarantee operation has been abolished, exceptions will be made for this special guarantee, taking full guarantee responsibility for the entire loan amount. We have also significantly relaxed screening criteria so that companies with a combined usage amount exceeding 800 million KRW from the Korea Credit Guarantee Fund and Korea Technology Finance Corporation can receive this special guarantee support.”

Woo Beom-gi, Deputy Governor for Political Affairs of Jeonbuk Province, said, “We hope this special management stabilization fund support will help resolve the financial difficulties of manufacturing companies in the province struggling to secure liquidity. We will prioritize funding to help affected companies return to normal operations as quickly as possible.”

Meanwhile, to apply for guarantee support, documents such as business registration certificate, financial statements for the past three years or value-added tax standard certificate, and identification are required. For detailed information, inquiries can be made to the Jeonbuk Credit Guarantee Foundation or each branch of the handling banks.

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