Daegu Bank, Gyeongbuk Credit Guarantee Foundation Specially Contributes 12 Billion KRW... Low-Interest Loans for Small Business Owners

On the 9th, Gyeongbuk Province held a handover ceremony in the provincial government reception room, where Daegu Bank donated a special contribution fund to the Gyeongbuk Credit Guarantee Foundation to provide low-interest financial support to small business owners in the province.

Lee Cheol-woo, Governor of Gyeongbuk, received a certificate from Hwang Byung-woo, President of Daegu Bank, confirming a special contribution of 12 billion KRW to the Gyeongbuk Credit Guarantee Foundation, and expressed his gratitude for Daegu Bank's efforts to support small business owners in Gyeongbuk.

Hwang Byung-woo, President of Daegu Bank (center), is taking a commemorative photo with Lee Cheol-woo, Governor of Gyeongbuk (right), and Kim Se-hwan, Chairman of the Gyeongbuk Credit Guarantee Foundation, after making a special contribution of 12 billion won to the Gyeongbuk Credit Guarantee Foundation.

The 12 billion KRW specially contributed by Daegu Bank will be used as a guarantee fund to support policy funds worth 180 billion KRW (15 times the contribution amount) for small business owners in the Gyeongbuk region who are struggling under high interest rates.

In particular, a product combining the Ministry of SMEs and Startups’ policy funds (Small Enterprise and Market Service) (approximately 1 trillion KRW in 2023, with an actual loan interest rate of 4.41% in Q4 2023) and the Gyeongbuk Small Business Development Fund’s interest subsidy project (2% annual support for 2 years) has been made possible by establishing a computerized system since last year, allowing loans at low interest rates around 2%.

This is a meaningful cooperation case between financial institutions that was achieved while Gyeongbuk Province, economic-related organizations, and commercial banks sought low-interest support measures to stabilize the economy for ordinary citizens last year. Daegu Bank established a computerized system to enable a combined product of government small business policy funds and the Gyeongbuk Support Finance interest subsidy project.

When the Ministry of SMEs and Startups’ policy funds are exhausted, loans with general guarantees (5?6%) will be promoted, and when combined with the Gyeongbuk Support Finance interest subsidy project, loans can be used at 3?4% interest rates.

The loan limit is up to 100 million KRW, with conditions of either a lump-sum repayment after a 2-year grace period or installment repayment within a maximum of 5 years after a 2-year grace period. Applications can be made by selecting the branch at the business location through the ‘Gyeongbuk Credit Guarantee Foundation AI Call Center,’ where detailed information can be provided.

Governor Lee Cheol-woo of Gyeongbuk said, “As the economic crisis continues with sustained high interest rates and rising prices, the crisis felt by small business owners is at its peak. Understanding the difficulties of these ordinary citizens, I deeply thank Daegu Bank for doubling its special contribution compared to last year to provide low-interest financial support to small business owners and self-employed people in the province.”

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