Raise Your Business Funds! ... Gyeongnam Province Provides 98 Billion KRW Policy Loans to Small Business Owners

July 1st, 9 AM, Online Consultation Reservation

Benefits Including Interest Support and Guarantee Fee Reduction

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Se-ryeong] Gyeongsangnam-do will provide loan support of 98 billion KRW in policy funds to small business owners in the province.

The province has announced third-quarter support measures to assist small business owners in need of business funds for post-COVID-19 daily recovery and preparation for the Chuseok holiday.

The support targets small business owners registered in the province, but businesses that are temporarily closed or shut down, delinquent, bankrupt, under personal rehabilitation, credit recovery, unable to transact credit with other financial institutions, delinquent in national or local taxes, or involved in luxury, entertainment, or speculative industries are not eligible.

The general funds provided, including startup and business stabilization funds, amount to 40 billion KRW, with a limit of 100 million KRW per business, under conditions of a one-year lump-sum repayment or a one-year grace period followed by four years of installment repayment.

Gyeongsangnam-do will support an interest rate of 2.5% for one year on the loan amount and will reduce the one-year guarantee fee by 0.5 percentage points.

Small business owners in industries that suffered business restrictions or a sales decrease of 40% or more during the COVID-19 pandemic will receive 33 billion KRW in special daily recovery funds as loans.

The loan amount is limited to 20 million KRW per business, with repayment conditions and interest reduction benefits the same as the general funds.

The 10 billion KRW Chuseok holiday special funds will be implemented from August 16 to meet the cash needs of small business owners in the province during the Chuseok holiday, under the same conditions as the general funds.

The province also plans to support about 15 billion KRW remaining from the annual policy funds loan limit.

Loans under the Hope Dream special funds can also be received with the same interest, guarantee fee support, and repayment conditions as the general funds.

Eligibility requires meeting at least one of the following: the representative is from socially vulnerable groups such as persons with disabilities, North Korean defectors, large families, or multicultural families; the representative’s credit score is 744 or below; or the representative’s comprehensive income is 35 million KRW or less.

The province also announced that there is remaining limit for startup special funds for small business owners who have completed the Gyeongsangnam-do Small Business Startup Success Ladder education.

The startup special funds offer 2.5% interest support for two years and a 0.5 percentage point reduction in the one-year guarantee fee.

The Gyeongsangnam-do Small Business Startup Success Ladder education accepts applications on the Gyeongnam Credit Guarantee Foundation website and will be conducted until November.

Policy fund consultation reservations can be made from 9 a.m. on July 1 on the Gyeongnam Credit Guarantee Foundation website.

After consultation, loan limits are determined through document review of credit and sales, and on-site inspection of business locations, followed by issuance of a credit guarantee certificate.

Within 30 days of certificate issuance, loan applications can be submitted to six partner banks: NongHyup, Gyeongnam, Kookmin, Shinhan, Woori, and Hana Bank.

For more details, refer to the ‘2022 Gyeongsangnam-do Small Business Policy Fund 3rd Quarter Support Plan Notice’ on the Gyeongsangnam-do website or contact the Gyeongnam Credit Guarantee Foundation Customer Support Center.

An official from the province said, “We hope Gyeongsangnam-do’s loan support will help small business owners in the province who need business funds.”

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