Changwon Special City Launches 12 Billion KRW Financial Support for Small Business Owners

Up to 50 Million KRW Loan per Company for

Business Stability and Startup Funds

Changwon Special City in Gyeongnam Province will provide small business owners with a loan fund of 12 billion KRW in the second half of the year.

To support small business owners who are facing difficulties due to reduced consumption and prolonged economic downturn, the city will offer loans of up to 50 million KRW per business for business stabilization or startup funds, and will subsidize interest at an annual rate of 2.5% for one year.

Changwon Special City Hall, Gyeongnam.
Photo by Lee Seryeong

The funds are divided into business stabilization funds for small business owners who have been operating for more than six months after business registration, and startup funds for those operating within six months. Businesses in the financial and insurance sectors, luxury and speculative consumption industries, those that are temporarily closed or shut down, those with local tax arrears, and businesses that have already received funds for small and medium enterprises are excluded.

Repayment methods include lump-sum repayment at maturity after one year or a four-year installment repayment with a one-year grace period.

Applications can be made starting from the 14th through the reservation system on the Gyeongnam Credit Guarantee Foundation website until funds are exhausted. After guarantee screening, applicants can receive a guarantee certificate and then take out loans at affiliated financial institutions (43 locations) within the region, such as Gyeongnam Bank and NongHyup.

Mayor Hong Nampyo said, “I hope this support will help alleviate the difficulties faced by small business owners who are struggling due to the prolonged economic downturn. We will continue to make every effort to prepare support measures for small business owners.”

Meanwhile, the city provided a total of 2 billion KRW in contributions to the Gyeongnam Credit Guarantee Foundation this year, and in the first half of the year alone, it supported 358 local small businesses with loans totaling 11.9 billion KRW.

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