Jiyeok Sinbo Provides 1.7 Trillion Won in Guarantees to Small Businesses and Small Merchants... Easing Chuseok Financial Difficulties

Local Government Policy Funds of 1 Trillion Won and More Supported
Agreed Interest Rates Applied Through Financial Companies

The Korea Credit Guarantee Fund Central Association announced on the 14th that regional credit guarantee foundations will provide guarantees worth 1.7 trillion KRW by the 15th of next month as support measures for small businesses and small merchants during Chuseok.

On July 27th, a merchant was receiving cash at Mangwon World Cup Market in Mapo-gu, Seoul.
[Photo by Yonhap News]

They will support 1 trillion KRW in local government policy funds, 100 billion KRW in government special guarantees, 300 billion KRW in financial institution agreement guarantees, and 300 billion KRW in other general guarantees, while easing financial cost burdens through interest subsidy and guarantee fee rate reductions (0.2 percentage points). Local government policy funds reduce financial costs by providing interest subsidies of 1 to 3 percentage points on loan interest rates. Government special guarantees target medium-credit re-startup companies that have difficulty securing funds. If the representative's personal credit score is between 710 and 839 according to NICE Information Service standards, they are classified as medium credit.

Additionally, through agreements with financial institutions, special agreement interest rates will be applied to smart small manufacturers (Hana Bank) and companies operating in crisis industries such as fisheries (Industrial Bank of Korea).

Small businesses and small merchants not falling under these categories will continue to be supported through general guarantees.

Lee Sang-hoon, President of the Korea Credit Guarantee Fund Central Association, said, “We hope that the guarantee supply to resolve financial difficulties during Chuseok will help small businesses and small merchants have a warm holiday.”

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