Shinbo Central Association Provides 100 Billion Won Guarantee Support to Small Businesses in Crisis Industries

Preferred support targets are inns and guesthouse businesses
Guarantee applications and submissions start from the 25th

The Korea Credit Guarantee Fund (KODIT) announced on the 25th that it will implement the 'Crisis Industry Support Agreement Guarantee' to provide proactive support to small businesses and micro-entrepreneurs facing difficulties in securing funding.

A 'For Rent' sign is posted at a commercial building in Seoul.
[Photo by Yonhap News]

The Ministry of SMEs and Startups and local governments are supporting the issuance of credit guarantees worth 25 trillion KRW this year for small businesses and micro-entrepreneurs through contributions to guarantee funds. KODIT has received a special contribution of 7 billion KRW from Industrial Bank of Korea and plans to provide new guarantees worth 100 billion KRW to micro-entrepreneurs operating in crisis industries through 17 regional credit guarantee foundations.

This agreement guarantee designates lodging and guesthouse businesses experiencing difficulties as priority support targets. The guarantee ratio is increased from the general guarantee rate of 85% to 100% for crisis industries and 90% for other industries. Within a guarantee amount of up to 50 million KRW, the guarantee limit calculation is preferentially applied up to 150% of the existing calculated amount. The guarantee fee rate is 0.9% for general support and 0.8% for preferential support.

Applications and submissions for guarantees began on the same day. For more details, contact KODIT or any of the 17 regional credit guarantee foundations for guidance.

Lee Sang-hoon, Chairman of KODIT, stated, “We are implementing this agreement guarantee with Industrial Bank of Korea to focus support on crisis industries facing difficulties, and we plan to continue efforts to provide funding support to vulnerable sectors through the activation of the agreement guarantee program.”

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