Gyeongju City Provides 7 Billion KRW Special Guarantee Loans to Small Business Owners with 3% Annual Interest Support for 2 Years

Gyeongju City Hall

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Jae-ho] Gyeongju City will begin providing emergency fund loans through special guarantees starting on the 25th to support small business owners struggling due to the prolonged COVID-19 pandemic.

The special guarantee system is a program supported by the city that allows small business owners who lack collateral and cannot obtain loans from financial institutions to receive low-interest loans from those institutions.

To support emergency fund loans for low-credit small business owners facing increasing financial difficulties, the city has contributed 700 million KRW to the Gyeongbuk Credit Guarantee Foundation and will issue special guarantee certificates for loan funds ten times that amount, totaling 7 billion KRW (up to 20 million KRW per person). Additionally, the city will subsidize 3% per annum of the loan interest for two years.

The support targets small business owners with a credit score of 744 or below (credit grade 6), who have a business location in Gyeongju City as of the application date and have had a registered residential address in the city for at least six months.

Small business owners within the Traditional Commercial Preservation Zone (an area within 1 km from the boundary of markets registered as traditional markets) and those operating Good Price Shops can apply regardless of their credit grade.

Applicants should bring their ID and business registration certificate and apply at the Gyeongbuk Credit Guarantee Foundation Gyeongju Branch located on the 2nd floor of Daegu Bank in Seobu-dong. After checking for disqualifications such as personal credit rating and confirming guarantee eligibility, applicants can receive loans from one of the ten guaranteed financial institutions (NH Nonghyup, Daegu Bank, Kookmin Bank, Woori Bank, Shinhan Bank, Gyeongnam Bank, KEB Hana Bank, IBK Industrial Bank, Saemaeul Geumgo, and Credit Unions).

Ye Byeong-won, Director of the Economic Policy Division, stated, "We hope that the emergency fund loans will help stabilize the management of small business owners struggling due to COVID-19," and added, "We will contribute a certain amount annually to assist more small business owners."

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