Jiyeok Sinbo Implements 'Pre-Guarantee System' for Prospective Entrepreneurs

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Photo by Shin Yong Bo Jeung Jae Dan Joong Ang Hoe

[Asia Economy Reporter Lee Junhyung] The Korea Credit Guarantee Fund Central Association announced that it will implement the 'Promising Prospective Entrepreneur Preliminary Guarantee' starting from the 2nd through regional credit guarantee foundations.

This is to encourage stable business settlement for prospective entrepreneurs before business registration and to support initial funding. Consultations and applications can be made at 16 regional credit guarantee branches nationwide.

The Central Association will review and notify the guarantee limit before startup through the promising prospective entrepreneur preliminary guarantee, and provide guarantee support upon startup after notifying the planned guarantee support. The target includes prospective entrepreneurs who have not yet registered their business but plan to complete business registration and practically start their business within three months, and who have completed startup education or consulting training or intend to commercialize intellectual property rights.

Regional credit guarantee foundations offer preferential guarantee rates (from 85% to 90%), preferential guarantee fees (within 1% per annum), and loans up to 50 million KRW based on personal credit scores to promising prospective entrepreneurs.

Prospective entrepreneurs can estimate the necessary funds and the amount of guarantee support through the preliminary guarantee system and receive startup funds simultaneously with business registration. This is expected to resolve the uncertainty of funding, which is a difficulty faced by prospective entrepreneurs in the early stages, allowing them to establish business plans more stably.

Kim Byunggeun, Chairman of the Central Association, said, "This will provide more systematic and well-prepared startup support to prospective entrepreneurs with excellent business ideas and greatly help stable business settlement. The Central Association and regional credit guarantee foundations will faithfully fulfill their role as policy financial institutions that assist not only small businesses and small merchants but also prospective entrepreneurs."

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