Incheon Shinbo, Early Achievement of 1 Trillion Won Target for Small Business Guarantee Supply

Additional 200 Billion KRW Supply in Second Half Including 50 Billion KRW Interest-Free Special Guarantee

[Asia Economy Reporter Park Hyesook] The Incheon Credit Guarantee Foundation has supported a total of 1.0223 trillion KRW (44,149 cases) in guarantees to small business owners this year, achieving its annual target of 1 trillion KRW ahead of schedule.

Following the record high guarantee supply of 1.6178 trillion KRW last year when COVID-19 occurred, it has actively supported small business owners who are struggling due to sharp sales declines and poor business performance this year as well.

The guarantees include 259.2 billion KRW for COVID-19 damage special guarantees, 20.1 billion KRW for vulnerable groups (low credit, low income, etc.) Hope Dream special guarantees, 32.8 billion KRW for financial institution special contribution agreement guarantees, 12.2 billion KRW for basic local governments (gun·gu) special guarantees, 8.5 billion KRW for 햇살론 (Haetsal Loan), and 689.5 billion KRW for other guarantees (including extensions).

In particular, in the first half of this year, policy fund support was significantly expanded by supplying 230 billion KRW in interest-free special guarantees and 20 billion KRW in ultra-low interest rate special guarantees at around 1% annually to reduce the financial burden on small business owners.

The demand for small business guarantees has steadily increased, and the Incheon City policy fund special guarantee implemented on the 9th received such a great response that some applications were closed within 3 to 4 days of its start.

In the second half of the year, the expansion of guarantee supply to support small business owners affected by COVID-19 will continue.

The 50 billion KRW interest-free special guarantee for small business owners is expected to be implemented as early as next month, and the 25 billion KRW special guarantee for small business owners in alley markets, youth startups, and redevelopment areas will be sequentially implemented between September and October.

In addition, a total of 200 billion KRW in guarantees will be additionally supplied in the second half of the year, including 36 billion KRW in special guarantees for medium and low credit small business owners and 25 billion KRW in bridge guarantees for closed small business owners.

Cho Hyun-seok, Director of Incheon Credit Guarantee Foundation, stated, "We will continue to supply guarantees in the second half of the year so that local small business owners can overcome the COVID-19 crisis and serve as a reliable support for small business owners."

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