Gyeonggi Shinbo Surpasses 200 Billion Won in 'Credit UP Special Guarantee' for High-Interest to Low-Interest Refinancing

[Asia Economy (Suwon) = Reporter Lee Young-gyu] The 'Credit UP Special Guarantee' of the Gyeonggi Credit Guarantee Foundation recorded a guarantee performance of 200 billion KRW in less than a month since its introduction last month.

The Credit UP Special Guarantee is a guarantee project that quickly supports low-interest funds to help small and medium-sized enterprises (SMEs) and small business owners, who are suffering from the 'triple hardships' of high interest rates, high prices, and high exchange rates, overcome liquidity crises and achieve full business recovery, in accordance with the special measures for public livelihood stabilization in Gyeonggi Province during the 8th local government administration.

The Gyeonggi Credit Guarantee Foundation announced on the 18th that the Credit UP Special Guarantee, introduced on the 19th of last month, surpassed 200 billion KRW as of the 14th of this month.

For the Credit UP Special Guarantee project, the Gyeonggi Credit Guarantee Foundation has secured a total guarantee fund of 400 billion KRW by receiving a total of 71.5 billion KRW in contributions from Gyeonggi Province, including an initial 40 billion KRW. This is the largest scale of contribution since the foundation's establishment.

The foundation expects that about 18,000 small business owners and SMEs will benefit from this Credit UP Special Guarantee.

It also forecasts effects such as a sales increase of 1.052 trillion KRW, value-added creation of 184 billion KRW, and employment creation of 4,180 people.

Although the central government is also implementing a high-interest refinancing loan support system for self-employed and small business owners, the loan interest rate exceeds 5% per annum due to partial guarantees (90% guarantee ratio). However, the Credit UP Special Guarantee supports full guarantees (100% guarantee ratio) for a total of five years to reduce financial costs, resulting in an effective loan interest rate in the 2% range as of the end of September.

Additionally, to quickly support the Credit UP Special Guarantee, a non-face-to-face application method is also in operation. Medium- and low-credit applicants can apply for guarantees through the mobile applications of lending banks (NH Nonghyup Bank, KB Kookmin Bank, Woori Bank) without visiting branches.

Lee Min-woo, Chairman of the Gyeonggi Credit Guarantee Foundation, emphasized, "I hope this Credit UP Special Guarantee becomes a small but great hope for SMEs and small business owners in the province who are struggling due to COVID-19," adding, "We will strive to be a reliable partner with the belief that the credit recovery and business stabilization of SMEs and small business owners in the province is the first step toward the recovery of the livelihood economy."

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