Incheon City Provides 20 Billion KRW Loan Support to Financially Vulnerable Small Business Owners

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City is providing 20 billion KRW in management stabilization funds to support small business owners struggling due to the COVID-19 pandemic.

The city, in collaboration with NongHyup Bank, Hana Bank, and Incheon Credit Guarantee Foundation, will offer ultra-low interest loans at an annual rate of 0.9% to small business owners who have difficulty accessing financial institution loans, with up to 20 million KRW per business.

The support targets low-income and disabled small business owners among individual entrepreneurs operating in Incheon, as well as low-credit small business owners with a credit score of 744 or below (based on NICE Information Service).

To facilitate this loan support, the city has increased the loan amount from the initial 10 billion KRW to 20 billion KRW and reduced the guarantee fee from the previous 1% to 0.5%, which is half the original rate.

Byun Jooyoung, Head of the Incheon City Job and Economy Headquarters, stated, "Small business owners in vulnerable groups who have been trapped in a vicious cycle of high-interest loans will find relief from financial difficulties through this loan support, and the burden of principal and interest repayment will decrease thanks to the ultra-low interest rate." He added, "We will continue to actively promote support measures for small business owners who are marginalized in financial blind spots."

The application period for the management stabilization funds starts on the 22nd and will continue until the funds are exhausted. Applications can be submitted by visiting the Incheon Credit Guarantee Foundation branch in the area where the business is located.

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