Daegu City Expands Support for 'Startup Failure Policy Funds'... Unlimited Industry Applications Allowed

Rapid Support for Small Loan Companies, Up to 100 Million KRW Limit, Partial Loan Interest Support

The photo shows the relocation ceremony of the headquarters held on January 29, 2015, at the new building of the Credit Guarantee Fund in Daegu Innovation City.

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] On the 8th, Daegu City announced that it will expand policy fund support by opening special guarantee programs to all industries to help failed entrepreneurs make a comeback.

The "Support System for Rebound of Failed Entrepreneurs" is a system that provides an opportunity for a fresh start by freeing those whose credit has deteriorated due to unavoidable bankruptcy from existing debt burdens, allowing them to take on new challenges.

Previously, this support was limited to local companies within 7 years of re-establishment in manufacturing, new growth engines, knowledge services, and cultural content industries, who were undergoing credit recovery procedures as diligent payers, and had total debts of 30 million KRW or less.

However, from the 8th, for one year on a temporary basis, support will be provided regardless of industry, and during this period, the mandatory completion of the Daegu City Small Business and Small Merchant Success Support Center's "Diligent Failures Rebound Support Education" will also be temporarily abolished.

In addition, application procedures will be simplified for faster support, such as omitting business plan PT presentations for companies applying for loans of 20 million KRW or less, and easing the review by the Rebound Review Committee for companies applying for loans of 30 million KRW or less.

The loan fund totals 3 billion KRW. Special guarantee loans will be provided with a limit of 100 million KRW per company, a 100% guarantee ratio, and a guarantee fee rate of 0.8%. The loan period is up to 5 years, and interest support ranges from 1.3% to 2.2% for one year. Re-entrepreneurs wishing to use the funds can apply at any of the six branches of the Daegu Credit Guarantee Foundation.

Hong Ui-rak, Deputy Mayor for Economic Affairs of Daegu City, stated, "We hope that this expansion of rebound fund support will be a turning point for re-entrepreneurs who have not lost hope despite business failures and the COVID-19 crisis, and we will continue to establish a broad support base for re-challenges."

Meanwhile, Daegu City supported 11 companies with 230 million KRW last year, and since the first year of the program in 2017, a total of 36 companies have received 1.01 billion KRW in "Support for Rebound of Failed Entrepreneurs" funds.

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