Support for Small Business Owners Struggling with High Interest Rates... NongHyup Bank Contributes 8.2 Billion KRW to Gyeongbuk Credit Guarantee Foundation

Gyeongbuk Province announced that various measures are being explored to alleviate the burden on small and medium-sized enterprises and small business owners struggling with high interest rates, and that active cooperation cases from financial institutions are continuing.

Gyeongbuk Provincial Government Office.

On the 24th, Governor Lee Cheol-woo received a certificate of special contribution of 6 billion KRW to the Gyeongbuk Credit Guarantee Foundation from Lee Seok-yong, President of NongHyup Bank, at the provincial office, and expressed his gratitude for NongHyup Bank’s strong support for the proactive financial support measures promoted by Gyeongbuk Province.

In particular, this year NongHyup Bank is making a special contribution of 6 billion KRW, the largest ever, to participate in overcoming the economic crisis caused by high interest rates, and according to an agreement with the Korea Credit Guarantee Foundation, it plans to additionally contribute 2.2 billion KRW as a discretionary contribution based on the average outstanding balance of operating funds loans in the province last year, bringing the total contribution to approximately 8.2 billion KRW.

This special contribution fund will be used as a guarantee fund to support policy funds worth 90 billion KRW (15 times the contribution amount) for small business owners in the province, and when combined with the Gyeongbuk Backbone Finance Interest Subsidy Project through general guaranteed loans (at 5% interest), it can be used at an interest rate in the 3% range.

The loan limit is up to 50 million KRW, with conditions of a 2-year grace period followed by 3 years of repayment or a 2-year grace period with lump-sum repayment, and applicants can select the branch at their business address through the ‘Gyeongbuk Credit Guarantee Foundation AI Call Center (1588-7679)’ to receive detailed information.

Furthermore, since NongHyup Bank held a financial support policy meeting with the province, related organizations, and financial institutions to respond to high interest rates, it has been actively cooperating in lowering the agreed interest rates for small business guarantee products and special guarantees for cities and counties from the stage of reviewing various interest rate reduction plans.

Governor Lee Cheol-woo said, “NongHyup is the most familiar bank in Gyeongbuk, where the rural area ratio is high,” and added, “I deeply thank NongHyup Bank for contributing a large fund at this critical moment when many residents are facing difficulties and for actively assisting in the implementation of high interest rate countermeasures.”

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