Yongin City Offers 'Annual 1%' Facility Improvement and Operating Loans to Food Hygiene Businesses

[Asia Economy (Yongin) = Reporter Lee Young-gyu] Yongin City in Gyeonggi Province is providing low-interest loans at an annual rate of 1% for facility improvement funds and operating funds to ease the economic burden on food hygiene businesses.

Food manufacturing and processing businesses can borrow up to 80% of the total construction cost, up to 500 million KRW, for the purpose of improving production facilities. The repayment terms are a 2-year grace period followed by equal installments over 3 years.

For food service establishments, facility improvement funds of up to 100 million KRW can be supported. The repayment conditions are the same.

Operating funds can be borrowed up to 20 million KRW, and for model restaurants or establishments participating in the restaurant hygiene rating system, up to 30 million KRW is available. For restroom facility improvements, loans of up to 20 million KRW are possible. The repayment term is a 1-year grace period followed by equal installments over 2 years.

However, businesses that are temporarily closed or out of operation, entertainment or Danranjujom (Korean style karaoke bars) establishments, or those that have violated the 'Act on the Punishment of Acts of Arranging Sexual Commercial Transactions' or the 'Food Sanitation Act' within one year from the loan application date are excluded from support.

To apply, applicants must first consult with the NongHyup Yongin City branch, the loan handling bank, to check loan eligibility, then download the loan application form from the city’s website and submit it to the Hygiene Division.

The city reviews the purpose of the loan, business feasibility, and eligibility of the applicant business, recommends candidates, and after review by NongHyup and Gyeonggi Province, assigns the loan recipients and amounts.

A city official stated, "We expect this to help food business operators struggling due to the economic downturn manage clean and safe establishments through the Food Promotion Fund."

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