Busan City Supports Loans for Taxi Industry in Financial Crisis... Special Guarantee and Loan Agreement Signed with Financial Sector

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City is stepping up to support loans to help stabilize the management of corporate taxi companies facing financial difficulties.

On the 27th, Busan City announced that it will sign a 2022 Corporate Taxi Special Guarantee Business Agreement with Busan Credit Guarantee Foundation, Busan Bank, and others to support the stabilization of the management of Busan corporate taxi companies, which have fallen into serious financial difficulties due to the prolonged COVID-19 pandemic and the continuous rise in transportation costs.

Through this agreement, Busan City will make a special contribution of 1 billion KRW as guarantee funds to the Busan Credit Guarantee Foundation, which will select eligible companies to support loan credit guarantees with a guarantee limit of 20 billion KRW. In addition, Busan Bank will provide loans with preferential interest rates to companies with credit guarantees.

The loan period is until the end of this year, and the loan amount is available up to 200 million KRW per Busan corporate taxi company, with a maximum of 3 million KRW per taxi license based on the number of taxi licenses.

The loan term is five years, and the repayment method is equal monthly principal installments. Most companies qualify for this special guarantee, but companies with extremely low credit scores may find it difficult to obtain loans.

The foundation and the bank will begin accepting applications for guarantee loans from the 27th. By submitting the necessary documents for guarantee and loan screening at the bank or foundation branches, the guarantee screening will be completed within about five business days after application, and the customer and the foundation will sign a credit guarantee agreement. Finally, once the customer pays the guarantee fee to the bank, the loan will be executed.

Jung Im-su, Director of the Busan City Transportation Bureau, said, “We hope that this corporate taxi special guarantee agreement will help alleviate the financial difficulties faced by the taxi industry.” He added, “In addition, we will regularly operate round tables to check the current status of the taxi industry, start a project next year to establish a taxi industry development strategy, expand the Hope-Keum project, and support the replacement of card payment terminals.”

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