Pohang City Signs Business Agreement to Establish 30 Billion Won Special Guarantee Fund for Small Business Hope Partnership

Daegu Bank and Gyeongbuk Credit Guarantee Foundation Agreement... Support for Small Business Management Stability Funds

Up to 50 Million KRW Loan, 3% Interest Support for 2 Years, Strengthening Small Business Self-Reliance

Mayor Lee Kang-deo

On the 13th, Pohang City signed the ‘Pohang City Small Business Hope Partnership 30 Billion KRW Special Guarantee Business Agreement’ together with Daegu Bank and the Gyeongbuk Credit Guarantee Foundation at the Daegu Bank headquarters.

On the 13th, Pohang City signed a 'Pohang City Small Business Hope Partnership 30 Billion Won Special Guarantee Business Agreement' with Daegu Bank and Gyeongbuk Credit Guarantee Foundation at the Daegu Bank headquarters.

The signing ceremony was attended by officials from each organization, including Mayor Lee Kang-deok, Daegu Bank President Hwang Byung-woo, and Chairman Kim Se-hwan of the Gyeongbuk Credit Guarantee Foundation. The agreement was established to provide financial support measures for small business owners facing difficulties in securing funds due to an uncertain business environment, aiming to revitalize the local economy and support business activities.

According to the agreement, Pohang City and Daegu Bank will each make a special contribution of 1.5 billion KRW, and Pohang City will support 3% interest on the guarantee funds for two years. Additionally, Daegu Bank will apply a preferential interest rate (CD rate + 1.8%), and the Gyeongbuk Credit Guarantee Foundation will issue loan guarantees totaling 30 billion KRW to small business owners.

Notably, this agreement is significant in expanding financial support to small business owners struggling due to the prolonged economic crisis, supporting the growth of local small businesses, and strengthening self-sustainability through startup support for small business owners with weak management foundations.

The maximum guarantee limit per small business owner is up to 20 million KRW, and for young small business owners within six months of startup, support of up to 50 million KRW is available. The special guarantee loan support for small business owners covers all industries in the Pohang area except for certain sectors such as entertainment, gambling, and speculative businesses.

Loan interest of 3% will be directly supported by Pohang City for two years, and repayment options include either a two-year grace period followed by three years of equal principal payments or a lump-sum repayment after two years.

Since 2011, Pohang City has supported 7,847 local small business owners with special guarantees totaling 129.7 billion KRW, contributing to reducing financial burdens and stabilizing management.

Furthermore, since last year, refinancing funds have been allowed, and credit score criteria have been lifted, enabling small business owners of all credit ratings to apply for the program, significantly expanding the support target.

Accordingly, small business owners currently using general guarantees with high interest rates or those who have used Pohang City’s special guarantees and whose interest support period has ended can now switch to this special guarantee with lower interest rates (refinancing guarantee).

Applications will be accepted from the 19th until the budget is exhausted. Small business owners wishing to consult should bring identification, business registration certificates, and other required documents to visit the Pohang branch of the Gyeongbuk Credit Guarantee Foundation. After applying, the loan limit will be determined through a guarantee review, and after receiving the guarantee certificate from the foundation, applicants can visit the bank to apply for the loan.

Mayor Lee Kang-deok said, “I hope this special guarantee will help alleviate the burdens of small business owners struggling with financial difficulties,” and added, “The city will continue to do its best to prepare support measures tailored to local conditions for small business owners.”

After the business agreement, Mayor Lee Kang-deok gave a special lecture titled ‘Our Tasks for the Rebound of Crisis-hit Daegu and Gyeongbuk’ to Daegu Bank employees, explaining projects that the region is focusing on to truly embrace the era of local autonomy.

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