Iksan City, Shinbo, and Kibo Join Hands for Special Mutual Growth Guarantee for Businesses

Support for Guarantee Fees on Loans up to 100 Billion Won

A commemorative photo is being taken after the signing ceremony of the Iksan Companies Win-Win Special Guarantee Business Agreement. Photo by Iksan City

[Asia Economy Honam Reporting Headquarters Reporter Hong Jae-hee] Iksan City, Jeonbuk, has taken steps to support small and medium-sized enterprises (SMEs) facing a crisis due to the spread of COVID-19.

On the 9th, the city announced that it signed a “Cheer Up! Iksan Enterprises Win-Win Special Guarantee Business Agreement” with the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation to support SMEs.

This agreement was prepared to provide prompt management funds to SMEs struggling due to the economic downturn caused by COVID-19 and to reduce companies’ financial costs.

Attending the agreement ceremony were Jeong Heon-yul, Mayor of Iksan, Han Young-chan, Head of Honam Sales Headquarters of the Korea Credit Guarantee Fund, Yoon Jae-min, Head of Honam Regional Headquarters of the Korea Technology Finance Corporation, and other officials, who mutually agreed on overcoming the crisis and establishing a growth foundation for companies.

The Iksan Enterprises Win-Win Special Guarantee project is the only program implemented by a local government in the province, where the city supports the guarantee fee required for loan execution for companies approved for SME development funds by up to 0.5% annually (up to 2 million KRW per company).

The city plans to secure a budget of up to 500 million KRW this year, which can support guarantee fees for loans up to 100 billion KRW.

Additionally, the loan amount with interest support of 3~4.5% per company has been increased from 200 million KRW to 400 million KRW for six months, and the maturity of loans to be repaid this year has been extended by six months, among other policies to improve financial difficulties of local SMEs.

Han Young-chan, Head of Honam Sales Headquarters of the Korea Credit Guarantee Fund, said, “We welcome Iksan City’s proactive measures to resolve companies’ financial difficulties caused by the outbreak of COVID-19,” adding, “Our institution will also do its best to play the role of creating an innovative ecosystem where SMEs can innovate and grow.”

Yoon Jae-min, Head of Honam Regional Headquarters of the Korea Technology Finance Corporation, said, “It is encouraging that Iksan City is taking the lead in overcoming the crisis caused by COVID-19,” and added, “Our institution will also establish a comprehensive support system for SMEs so that the results of crisis recovery efforts can reach every corner of our economy.”

Mayor Jeong Heon-yul said, “We hope that the Iksan Enterprises Win-Win Special Guarantee and expanded support for SME development funds will help alleviate the financial difficulties of local SMEs,” and added, “We will continue to make every effort to discover and implement policies that provide practical help to SMEs.”

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