Seongnam City to Support 20 Billion KRW for Small Business Special Guarantees This Year... 7 Billion KRW Increase from Last Year

Seongnam City Hall

Seongnam City in Gyeonggi Province will provide 20 billion KRW in special guarantees this year to support local small business owners facing management difficulties due to high interest rates and economic recession.

The special guarantee for small business owners is a system supported by Seongnam City in partnership with the Gyeonggi Credit Guarantee Foundation to help small business owners lacking collateral easily obtain credit loans from commercial banks.

This year, Seongnam City contributed 2 billion KRW to the Gyeonggi Credit Guarantee Foundation to secure up to 20 billion KRW in guarantee resources. This amount is 7 billion KRW more than the 13 billion KRW in special guarantees provided last year.

The special guarantee targets small business owners residing in Seongnam City who have been operating their main business location in the region for more than two months (based on business registration certificate). The guarantee limit per business is up to 50 million KRW.

Applicants submit documents such as a loan application, a copy of the business registration certificate, and a small business owner confirmation to the Gyeonggi Credit Guarantee Foundation Seongnam branch. The foundation reviews the applicant's credit and financial status, conducts an on-site inspection, and then issues a credit guarantee certificate.

Small business owners who receive the credit guarantee certificate can easily obtain operating funds loans from commercial banks.

Small business owners who receive loans through Seongnam City's special guarantee will be supported with an interest subsidy equivalent to 2% of the loan interest for two years.

During the special guarantee consultation at the Gyeonggi Credit Guarantee Foundation, applicants can select one of six banks, including NongHyup, which have agreements with the city, and apply for secondary interest compensation (interest difference reimbursement) to reduce the loan interest amount.

To this end, Seongnam City has secured 650 million KRW in project funds for secondary interest compensation for small business owners' special guarantees.

Last year, Seongnam City supported 493 small business owners with 13 billion KRW in special guarantees and 400 million KRW in loan interest subsidies.

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