Namwon-si Leads Efforts to Save Small Business Owners... Expands Support Programs

[Namwon=Asia Economy Honam Reporting Headquarters Reporter Jeong Young-kwon] Namwon City in Jeonbuk is taking the lead in supporting small business owners.

The city announced on the 24th that it will revise the 'Namwon City Ordinance on Support for Small Business Owners' and actively support small business owners who are struggling to maintain their livelihoods amid worsening economic conditions of high inflation, high interest rates, and high exchange rates.

In response to the recent sharp increase in loan interest rates due to the central bank's base rate hike, the city plans to lower the loan barriers for small business owners by raising the loan limit of the existing financial special guarantee support project to 50 million KRW and increasing the interest subsidy from 2% to 3% to expand support.

Additionally, for young people who want to start new businesses rather than existing small business owners, the city plans to provide special guarantees within a limit of 50 million KRW, and in cooperation with the Credit Guarantee Foundation, it will provide professional management consulting throughout the entire business operation process from before to after startup.

To promote the daily recovery of small business owners, the city will sign a 'Namwon City Small Business Owner Fund Support Business Agreement' with eight financial institutions next month. As a condition of the agreement, a lower interest rate than that for general loans will be applied to small business loans, limiting the interest charges to reduce the interest burden on small business owners.

Since the financial special support project for small business owners began in 2013, it has provided guarantee loans totaling 11.7 billion KRW to 596 small business owners and subsidized interest amounting to 337 million KRW.

The city plans to continuously expand support projects related to small business owners, including small business store environment improvement projects, issuance of Namwon Love Gift Certificates, operation of the delivery app 'Wolmaeyo,' support for card fee subsidies, support for joining the Yellow Umbrella Mutual Aid, and revitalization of traditional market use.

Mayor Choi Kyung-sik said, "The local economy thrives when small business owners thrive, and for small business owners to thrive, basic consumption by citizens must come first. We will strive to activate the local economy through virtuous circulation of funds within the region by encouraging citizens' frugal consumption such as discount distribution of Namwon Love Gift Certificates and support for food delivery points."

Namwon=Asia Economy Honam Reporting Headquarters Reporter Jeong Young-kwon baekok@asiae.co.kr

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