Incheon City Grants Up to 1-Year Deferment on Repayment of Small Business Management Stabilization Loans
Incheon City announced on the 3rd that it will defer principal repayments on business stabilization loans for up to one year to support small business owners struggling with high interest rates and inflation.
The support targets small business owners operating in Incheon who have taken out loans from commercial banks through the Incheon Credit Guarantee Foundation and are currently repaying the principal. The city plans to allocate a total of 344 billion KRW to assist them, maintaining existing loan agreements while deferring only the principal repayments.
For small business owners repaying loans over four years with a one-year grace period, if 20 million KRW remains on the loan, they will reduce their monthly principal repayment burden by about 400,000 KRW. However, interest on the outstanding loan balance must still be paid monthly during the deferral period. The city expects that, together with the government's interest burden support policy for self-employed and small business owners (interest refunds from banks), reducing both principal and interest burdens will help small business owners recover and restart their businesses.
Small business owners wishing to defer principal repayments should visit the Incheon Credit Guarantee Foundation branch responsible for their business location in person with their business registration certificate and apply by December of this year. For more details, inquiries can be made to the Incheon Credit Guarantee Foundation or checked on their website.
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An official from Incheon City stated, "We have been injecting policy funds in cooperation with the Incheon Credit Guarantee Foundation and financial institutions to help small business owners overcome economic crises. However, due to the complex crisis of the three highs (high interest rates, high inflation, and high exchange rates), recovery is taking time, so we have prepared proactive and immediate measures. We will support small business owners to secure enough time to normalize their management through this principal repayment deferral," they said.
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