1 Trillion KRW of '3 No Funds' Released for Busan Small Business Owners... No More Worries About 'Guarantee Limit, Credit, Interest'!

Busan City, COVID-19 Relief Special Fund Support Agreement for Small Business Owners

May 31 MOU Signed by Busan City, Busan Bank, and Busan Credit Guarantee Foundation

Support for 10,000 Small Business Owners with 10 Million KRW Each Interes

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ignoring existing guarantee limits and credit ratings, interest-free money for one year is being distributed to small business owners in Busan.

Busan City has decided to provide a groundbreaking special fund totaling 100 billion KRW, with 10 million KRW per person, to 10,000 small business owners affected by COVID-19.

Busan City (Mayor Park Hyung-jun) announced on the 30th that it will sign a “COVID-19 Affected Small Business Owners 3-No Special Fund Support Agreement” with Busan Bank Co., Ltd. and Busan Credit Guarantee Foundation to resolve financial difficulties caused by decreased sales and increased fixed costs such as rent in livelihood-type small business sectors due to the prolonged COVID-19 pandemic.

The agreement removes three lending barriers: no limit, no credit check, and no interest, and the signing ceremony is scheduled to be held at 2 p.m. on the 31st in the 7th-floor video conference room of City Hall.

This agreement emerged from the “1st Public-Private Joint Emergency Economic Measures Meeting” held to overcome the COVID-19 crisis and prepare economic revitalization measures.

In response to demands for easing loan regulations and credit limits for small business owners affected by COVID-19, Busan City and leading local financial institutions, Busan Bank and Busan Credit Guarantee Foundation, broke the mold and united decisively for effective measures.

The support targets small business owners located in Busan who started their businesses before December 31, 2020.

Regardless of existing guarantee limits (no limit), 10 million KRW will be provided regardless of credit rating (no credit check), with no interest for one year and a 0.8% interest subsidy thereafter, supported for a total of five years. Busan Bank contributed 5 billion KRW, and a total of 100 billion KRW will be provided to 10,000 small business owners.

Mayor Park Hyung-jun of Busan said, “We needed to listen to the voices from the field and provide effective support measures for small business owners who have been most affected by COVID-19,” adding, “We hope the 3-No special fund support will be a pillar for small business owners who find it even harder to receive support.”

Mayor Park also stated, “We will prioritize Busan City’s policies to help small business owners recover and grow after COVID-19.”

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