Local Credit Guarantee Foundation Provides 200 Billion KRW Special Guarantee for Small Business Owners Using Smart Technology

[Asia Economy Reporter Moon Hyewon] The Korea Credit Guarantee Foundation announced on the 28th that it will implement a 200 billion KRW-scale ‘Smart Small Business Support Special Guarantee’ starting from the 31st.

This is to support small business owners whose business environment is rapidly changing due to the development of information and communication technology (ICT) and the spread of the novel coronavirus disease (COVID-19).

The guarantee target companies are small enterprises and small business owners whose representative’s credit rating is between 1 and 6 and who either ‘possess’ or ‘use’ smart technology.

Companies possessing smart technology refer to those that have technologies related to ▲ virtual and augmented reality fields (AR·VR·3D) ▲ artificial intelligence and Internet of Things fields (AI·IOT) ▲ unmanned integrated guidance systems (signage·kiosk) ▲ mobile or online ordering and simple payment systems (smart order), or provide and sell related services or products.

Companies using smart technology include businesses operating stores using unmanned ordering devices (kiosks), online ordering systems (delivery apps, etc.), and simple payment service affiliated restaurants and other retail businesses.

The guarantee ratio is 90%, the guarantee fee rate is within 0.8% per annum, and the guarantee period is up to 5 years. Regional credit guarantee foundations support up to 100 million KRW for companies possessing smart technology and up to 50 million KRW for companies using smart technology through preferential limit assessment.

Companies wishing to apply for the guarantee can consult and apply starting from the 31st at 16 regional credit guarantee foundations nationwide and 13 partner banks (NongHyup Bank, Shinhan Bank, KB Kookmin Bank, KEB Hana Bank, etc.) branches.

Kim Byung-geun, chairman of the Korea Credit Guarantee Foundation, said, “By supporting guarantees not only for companies that possess or provide services such as online ordering and simple payment systems but also for companies actively utilizing these technologies, the business conditions of small business owners leading innovation can be improved more actively.” He added, “We believe that banks will contribute to resolving management difficulties and financial cost burdens of small enterprises and small business owners who are leading or adapting to changes in the business environment through exemption of early repayment fees and application of loan interest rate caps.”

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