Jinan-gun, Special Support for Small Business Owners' Operating Funds

Jeon Chun-seong, Jinan County Governor. Photo by Jinan County Office

[Asia Economy Honam Reporting Headquarters Reporter Go Dallyeong] Jinangun, Jeonbuk (Governor Jeon Chunsung·photo) announced on the 29th that it will implement special management fund support measures to alleviate the financial difficulties of small business owners suffering from the COVID-19 crisis.

First, the repayment of principal and interest on the Commercial and Industrial Development Fund loans and Small Business Special Guarantee loans taken out by small business owners in the jurisdiction for store operation, etc., will be deferred for six months.

So far, Jinangun has supported interest at 3% up to 300 million KRW for the Commercial and Industrial Development Fund and up to 33 million KRW for the Small Business Special Guarantee loans, but as the COVID-19 crisis prolongs and the financial difficulties of small business owners worsen, it has decided to defer the repayment of loan principal and interest.

The deferred principal and interest can be repaid in a lump sum or in installments after six months. Accordingly, 155 small business owners will benefit, and the total scale of principal repayment deferral amounts to 8.6 billion KRW.

In addition, the three-month restriction period for re-loans of small business management funds has been abolished. Previously, small business owners who had received Commercial and Industrial Development Fund or Small Business Special Guarantee loans had to wait three months after maturity or early repayment before they could receive another loan.

As a result, small business owners who need management funds immediately after loan repayment can now receive re-loans without delay.

Also, the upper limit of interest support (3%) for the Commercial and Industrial Development Fund has been raised from 100 million KRW to 300 million KRW. Previously, small business owners who borrowed 100 million KRW can now receive additional loans up to 200 million KRW, and Jinangun will additionally support 3% interest.

Jeon Chunsung, Governor of Jinangun, said, “Small business owners in the jurisdiction are experiencing many difficulties due to consumption contraction caused by COVID-19,” and added, “We will implement various policies such as financial support for small business owners, who are the main axis of the local economy, to alleviate their difficulties and revitalize the local economy.”

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