Gyeongnam Province Eases Interest Burden for Small Business Owners... Policy Funds Loan of Over 12 Billion Won

1-Year Interest Support at 2.5%, Guarantee Fee Reduced by 0.5% for 1 Year

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

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongnam Province will provide loans of about 12 billion KRW in policy funds to small business owners in the province in the fourth quarter of this year.

According to the province on the 27th, 11 billion KRW of 'Startup and Business Stability Funds' will be allocated to small business owners in the province who need business funds in the fourth quarter.

The loan limit is up to 100 million KRW per business, with either a lump-sum repayment after one year or a one-year grace period followed by four years of installment repayments.

The province plans to support interest at 2.5%P for one year on the loan amount and reduce the one-year guarantee fee by 0.5%P.

Among the annually operated policy funds, about 1 billion KRW of special funds for low credit and low income will also be provided.

The special funds for low credit and low income can be supported if the applicant meets at least one of the following: ▲representative's credit score of 779 or below ▲representative's comprehensive income amount of 35 million KRW or less.

The loan limit is up to 10 million KRW per business, with the condition of either a lump-sum repayment after one year or a one-year grace period followed by four years of installment repayments. The interest support and guarantee fee reduction benefits are the same as those for the Startup and Business Stability Funds.

Gyeongnam Province's small business policy funds are available to small business owners registered in the province.

Businesses that are temporarily closed or shut down, those with overdue payments, bankruptcies, personal rehabilitation, credit recovery, those unable to conduct credit transactions with other financial institutions, those with unpaid national or local taxes, and businesses related to luxury, entertainment, or speculation are not eligible for support.

Reservations for fund consultations can be made from 9 a.m. on October 4th via the Gyeongnam Credit Guarantee Foundation website.

After mobile phone identity verification, applicants can reserve the consultation date and time, and on the scheduled day, visit the branch with the required documents and ID as guided via text message.

Those who have difficulty using the internet or mobile phone verification can call the Gyeongnam Credit Guarantee Foundation Customer Support Center to set the date and time.

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

After the guarantee certificate is issued, loans can be applied for within 30 days at six partner banks including NongHyup, Gyeongnam, Kookmin, Shinhan, Woori, and Hana Bank.

For more details, refer to the '2022 Gyeongnam Province Small Business Policy Fund 4th Quarter Support Plan Notice' on the Gyeongnam Province website or contact the Gyeongnam Credit Guarantee Foundation Customer Support Center.

A provincial official said, “The province aims to reduce the financial burden on small business owners during the period of rising interest rates by supporting interest and guarantee fees,” and added, “We hope small business owners who urgently need business funds will make use of this.”

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