Incheon Shinbo, 2.5 Billion KRW Special Guarantee for Small Business Owners' Rechallenge Support

[Asia Economy Reporter Park Hyesook] The Incheon Credit Guarantee Foundation Small Business Stepping Stone Center is expanding its special guarantee support for re-challenge this year from 2 billion KRW to 2.5 billion KRW to help financially marginalized small business owners who have failed diligently or are struggling due to COVID-19 to recover.

The support targets companies that received guarantee support from the foundation but failed to repay principal or interest, resulting in bond write-offs and management closure, as well as legally debt-terminated companies through personal rehabilitation, bankruptcy, or discharge.

The special guarantee for re-challenge prioritizes the possibility of business recovery over personal credit scores when reviewing applications. The guarantee support amount is up to 50 million KRW per company, and the guarantee fee is applied differentially within the range of 0.7% to 1.5% per annum.

Since 2019, Incheon Credit Guarantee Foundation has been implementing the special guarantee system for re-challenge, supporting a total of 167 companies with about 4.1 billion KRW until the end of last month. By year, 41 companies received 1 billion KRW in 2019, 52 companies received 1.38 billion KRW last year, and 74 companies received 1.76 billion KRW this year, showing a significant increase in demand each year.

In addition, the foundation not only provides simple guarantee support but also helps companies succeed in recovery through education, consulting support, and continuous follow-up management.

Cho Hyun-seok, Chairman of Incheon Credit Guarantee Foundation, said, "We will continue to strive to provide re-challenge opportunities for diligent failures and others to establish an economic self-reliance foundation and to create a virtuous cycle structure for fostering small business owners and the startup ecosystem."

Meanwhile, the recruitment for this re-challenge special guarantee project is open until the 8th, and detailed information can be obtained by contacting the Incheon Credit Guarantee Foundation Small Business Stepping Stone Center.

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