Gwangju Nam-gu Supports 4 Billion KRW in Management Funds, Largest Among Autonomous Districts

Nam-gu, Gwangju Metropolitan City, has reportedly exhausted a total of 4 billion KRW in funds this year through special guarantee loans and Hope Loans to stabilize the management of small business owners in the district.

This is the largest amount among the five autonomous districts in the Gwangju area, and it is evaluated to have played a strong supporting role for small business owners such as self-employed individuals in the district.

According to Nam-gu on the 21st, District Mayor Kim Byeong-nae issued a special directive at the beginning of this year to reduce the financial burden on small business owners in the district who are struggling due to the economic downturn. In cooperation with the Gwangju Credit Guarantee Foundation and Gwangju Bank, they promoted special guarantee loans, guarantee fees required for special guarantees, and interest rate differential compensation support projects related to loans.

In addition, in the second half of the year, they partnered with six local Saemaeul Geumgo branches to carry out the Hope Loan support project for small business owners in urgent need of management funds.

First, at the beginning of this year, Nam-gu signed a special guarantee support business agreement with the district office, Gwangju Bank, and the Gwangju Credit Guarantee Foundation to resolve the management difficulties of local small business owners. They prepared 200 million KRW from the district office and 50 million KRW from Gwangju Bank, then secured 3 billion KRW in policy loan funds through the Gwangju Credit Guarantee Foundation.

Nam-gu supported small business owners through the policy loan funds, and 158 small business owners, including self-employed individuals, received special guarantee loans and support funds for guarantee fees and interest rate differential compensation within a maximum limit of 20 million KRW per person.

In this process, Nam-gu separately invested 141 million KRW from the district budget to reduce the financial interest costs for small business owners by even a single won, supporting an interest rate differential of 4% per person (totaling 120 million KRW) for 158 small business owners, and also paid guarantee fees of 0.7% (totaling 21 million KRW) incurred during the loan process.

Along with this, from August this year, Nam-gu cooperated with six local Saemaeul Geumgo branches to launch the Hope Loan support project, providing 1 billion KRW in Saemaeul Geumgo policy funds to 112 small business owners.

Additionally, they invested an extra 40 million KRW from the district budget to support a 4% interest rate differential for the Hope Loans.

A Nam-gu official stated, "The special guarantee and Hope Loan policy funds have greatly helped small business owners in the district to focus on their management activities in a stable environment. In particular, the advantage of being able to secure management funds at a lower cost from financial institutions received strong positive responses among small business owners."

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