Ministry of SMEs and Startups Launches 'Re-Startup Special Guarantee' Worth 1 Trillion Won... No Credit Rating Restrictions
[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups will implement a 1 trillion KRW-scale 'Re-Startup Special Guarantee' starting from the 29th to support the recovery of small businesses and small merchants affected by COVID-19.
This special guarantee was launched after securing support funds through the second supplementary budget and concluding agreements with financial institutions to help small merchants who closed their businesses due to COVID-19 to restart.
The support targets small businesses and small merchants who have re-started their businesses or switched industries after closing down since January 1, 2020, with no restrictions on credit ratings.
The detailed support contents are as follows: through the guarantee screening of regional credit guarantee foundations, the guarantee limit per company is up to 50 million KRW, and the guarantee period is up to 5 years.
For customer convenience, the repayment method can be chosen between lump-sum repayment (lump-sum repayment after 1 year) and installment repayment (1-year grace period followed by 4 years of installment repayment).
The loan interest rate is operated within 'CD rate (91 days) + 1.7 percentage points' (as of the 27th, 4.3%) through consultation with financial institutions (based on installment repayment), and the guarantee fee paid to the regional credit guarantee foundation is fixed at 0.5% to reduce the financial burden on small merchants.
Small merchants wishing to receive the Re-Startup Special Guarantee can apply at any of the 17 regional credit guarantee foundations nationwide and branches of 13 commercial banks.
Hot Picks Today
!["Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①](https://cwcontent.asiae.co.kr/asiaresize/93/2026051914165468840_1779167814.png)
"Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- "I'll Stop by Starbucks Tomorrow": People Power Chungbuk Committee and Geoje Mayoral Candidate Face Criticism for Alleged 5·18 Demeaning Remarks
- "Hancom Breaks Away from Its 36-Year Mission and Formula for Success" (Comprehensive)
- "How Did an Employee Who Loved Samsung End Up Like This?"... Past Video of Samsung Electronics Union Chairman Resurfaces
Kim Ju-sik, Director of Corporate Finance at the Ministry of SMEs and Startups, stated, "We hope this special fund will help small merchants who have suffered difficulties due to COVID-19 to recover and stabilize their management."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
