Gimhae City Leads Local Economic Recovery with Policies That Small Business Owners Can 'Truly Feel'

Gimhae City, Gyeongnam, collaborated with BNK Gyeongnam Bank to provide low-interest loans to low-credit individuals who have difficulty obtaining loans from banks due to low credit scores. (Photo by Gimhae City)

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Sang-hyun] Gimhae City in Gyeongnam announced on the 10th that it will accelerate the recovery of the local economy through practical support policies for small business owners.

The main support measures include 45 billion KRW in small business development funds, small-scale business environment improvement projects, the expanded issuance of 100 billion KRW worth of Gimhae Love Gift Certificates, the construction of a small business SME distribution logistics center, and linked support with the Small Business Federation.

To provide low-threshold policy funds to small business owners whose liquidity has deteriorated due to the prolonged COVID-19 pandemic, this year, 45 billion KRW has been allocated as small business development funds to support small business owners registered within the jurisdiction.

With a maximum limit of 50 million KRW, an annual interest rate of 2.5% and credit guarantee fees (50% of the first year's amount) are supported over two years to help stabilize management.

In cooperation with Gyeongnam Bank, on the 3rd, a total of 2.5 billion KRW was lent at a low interest rate of 3.98% per annum to 250 companies, with a maximum limit of 10 million KRW per individual, targeting low-credit borrowers who have difficulty obtaining loans from banks due to low credit scores.

The small-scale business environment improvement project is also attracting strong interest from self-employed business owners. This year, support of up to 2 million KRW per company will be provided to 150 companies, and as of the 26th of last month, 554 applications?more than three times the project scale?have been received and are currently under review.

Through this project, restaurant environments are shifting from floor seating to table seating. In addition, support is available for business environment improvement projects such as POS system installation, interior and exterior renovations, and quarantine facility installation.

The Gimhae Love Gift Certificates will be issued on a scale of 100 billion KRW, 40 billion KRW more than last year, to promote local consumption and prevent the outflow of local funds.

Based on Zero Pay to alleviate small business owners' card fee burdens, small business franchisees with annual sales under 800 million KRW have no payment fees, and consumers enjoy a 10% discount and year-end income deduction benefits, making it a popular payment method for both business owners and consumers.

Additionally, around October, the small business SME distribution logistics center will be completed to lower product procurement costs through joint purchasing and joint logistics, enabling smooth product supply and strengthening the competitiveness of small business owners and neighborhood markets.

The center will be built with a project cost of 9.5 billion KRW on a 5,825㎡ site within the Seogimhae General Industrial Complex in Pungyu-dong, with a total area of 2,500㎡ and a single above-ground floor.

Furthermore, the city and the Small Business Federation are collaborating to provide timely professional consultations and assistance from related institutions on legal, tax, labor, and financial issues arising in business operations by operating a Small Business Civil Complaint Call Center staffed with one center director and two professional counselors at the federation.

Mayor Heo Seong-gon said, “We will do our best to ensure that the various support policies provided by the city to small business owners severely affected by COVID-19 are delivered without omission, so that they can be of practical help in overcoming this unprecedented crisis.”

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