Haenam-gun Supports Special Guarantee Products Exclusively for Social Economy Enterprises

Published 27 Aug.2021 09:22(KST)

Agreement on Financial Support Signed Between Military, Jeonnam Credit Guarantee Foundation, and Haenam Woori Credit Union

An agreement was signed to support exclusive special guarantee products for social economy enterprises. / ⓒ Asia Economy

[Haenam＝Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] On the 27th, Jeonnam Haenam-gun announced that on the 26th, it signed an agreement with Jeonnam Credit Guarantee Foundation and Haenam Woori Credit Union to support a dedicated special guarantee product for social economy enterprises.

A special guarantee refers to policy funds operated by reflecting relaxed screening criteria, preferential guarantee fees, and preferential guarantee ratios through agreements with credit guarantee foundations and financial institutions.

Haenam-gun contributed 35 million KRW, and the Jeonnam Credit Guarantee Foundation issued a guarantee certificate with a limit of 350 million KRW, which is 10 times the contribution amount. Through this, social economy enterprises can receive loans up to 50 million KRW without collateral from Haenam Woori Credit Union based on guarantee screening.

Haenam-gun plans to support the guarantee fee (1%) and loan interest (2.9%), allowing enterprises to receive loans without interest burden and use them as operating funds for two years.

Haenam-gun was selected for the Ministry of the Interior and Safety’s new project this year, the ‘Social Economy Collaboration System Establishment Project,’ securing 100 million KRW in project funds. It will promote financial support for special guarantee products for social economy enterprises, as well as various consulting, publicity, and fixed market channel establishment support projects.

Earlier in March, the ordinance on fostering and supporting social economy was amended, and prior consent for contributions was obtained from the county council, completing administrative preliminary procedures for financial support.

The agreement ceremony was attended by Myung Hyun-kwan, Haenam County Governor, Jeong Yang-su, Chairman of Jeonnam Credit Guarantee Foundation, and Yoon Young-sun, Chairman of Haenam Woori Credit Union, along with representatives of local social economy enterprises, celebrating a warm partnership.

Through the agreement, each institution agreed to actively cooperate in providing financial product support to social economy enterprises and to continuously pay attention to their growth.

Governor Myung Hyun-kwan stated, “We expect that this dedicated guarantee product support will be of some help to social economy entrepreneurs who are experiencing difficulties due to the economic downturn caused by COVID-19,” and added, “We will continue to provide active support to companies striving to realize warm social values.”