Baemin Supports 588 Loan Guarantees Within 3 Months of Launch
22.6 Billion Loan Guarantee... Additional After 105 Billion Won Exhausted
Baedal Minjok has surpassed 500 self-employed individuals receiving support through its agreement guarantee loan program designed to assist small business owners and traditional market merchants. The total guaranteed loan amount supported reaches 22.6 billion KRW.
Woowa Brothers, the operator of Baedal Minjok, announced on the 20th that, through the agreement guarantee loan program prepared together with the Korea Credit Guarantee Fund and KB Kookmin Bank, a total of 588 guarantee certificates worth 22.6 billion KRW had been issued as of the 18th.
Baemin’s agreement guarantee loan program is a win-win financial program established to support small food service business owners and traditional market merchants who have low credit ratings or face difficulties obtaining loans due to insufficient collateral. In December last year, Woowa Brothers and KB Kookmin Bank each contributed 3.5 billion KRW, totaling 7 billion KRW as guarantee funds, based on which the Korea Credit Guarantee Fund operates an agreement guarantee program worth 105 billion KRW.
This program gained popularity in some regions by operating mobile application windows. Previously, applicants had to visit the regional credit guarantee foundation in person to apply for guarantees and then receive loans from banks. Also, although the support targets and interest rate levels vary by local government, the interest rates were lowered by an average of about 2 percentage points through linkage with policy funds.
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Baemin plans to expand the agreement guarantee loan program for many small self-employed business owners and traditional market merchants. Once the 105 billion KRW fund is exhausted, additional funds will be secured to operate a second agreement guarantee loan program. Kim Joong-hyun, Head of the Value Management Office at Woowa Brothers, stated, "Since most of the funds are expected to be used up in the first half of the year, we plan to start planning follow-up projects."
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