Daejeon City Provides 'Special Guarantee' for COVID-19 Affected Companies... Up to 100 Million KRW Per Company

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City is providing special guarantee support for small local businesses.

On the 10th, the city announced that, together with the Daejeon Credit Guarantee Foundation, it will provide special guarantee management improvement funds to support small local manufacturing businesses and others suffering from the impact of the novel coronavirus disease (COVID-19).

The total support amount is 5 billion KRW, with a maximum limit of 100 million KRW per company. Eligibility is granted to small businesses and manufacturers whose business locations are in Daejeon and are officially registered and operating normally according to their business registration certificates.

Additionally, small businesses that receive loans through the special guarantee will be provided with an additional interest subsidy of 2% per annum for up to two years (secondary interest subsidy), and the credit guarantee fee paid by the companies at the time of the loan will be fully supported (1.1% per annum for two years), so the actual interest burden on companies is expected to be at the 1% level, the city anticipated.

The special guarantee financial support program will be implemented starting from the 10th of next month. For more details, inquiries can be made through the Daejeon Credit Guarantee Foundation or commercial banks such as Hana, Shinhan, and Woori Bank.

A city official stated, “We hope this special guarantee will help small businesses struggling due to the prolonged COVID-19 crisis.”

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