Gyeonggi-do Issues Nation's First 'Small Business Purchase-Only Card'... 20,000 Users, 100 Billion Won Scale

Gyeonggi Province is promoting the 'Minsheng Recovery Let’s Go' project, including issuing the nation's first purchase-only card for small business owners to alleviate the economic burden on small business owners struggling due to the economic downturn.

Gyeonggi Province will issue purchase-only cards with a limit of 5 million KRW per person to 20,000 small business owners in the province, the first of its kind in Korea, to alleviate the economic burden on small business owners struggling due to the economic downturn. Additionally, the province will extend the principal repayment period for funds borrowed during COVID-19 and promote marketing support through large e-commerce platforms.

On the 25th, Gyeonggi Province announced the ‘Livelihood Recovery Let’s Go! Small Business Owners Cheer Up! Project’ containing these measures.

First, to support operating expenses exclusively for small business owners, the province will issue the nation’s first ‘Gyeonggi Small Business Owners Cheer Up Card.’ However, this card is limited to business-related purchases to help small business owners facing temporary liquidity issues cover essential expenses. Therefore, it cannot be used for payroll or cash advances. When using the card, users receive a 6-month interest-free benefit, no annual fees or guarantee fees, tax deductions, and up to 500,000 KRW cashback.

Gyeonggi Province will supply a total of 100 billion KRW to about 20,000 small business owners in the province. Each business can use up to 5 million KRW. The pilot project will start around November this year, with full implementation next year.

The province will also reduce the debt repayment burden for small business owners through the ‘Special Guarantee for Extension of Debt Repayment for Medium- and Low-Credit Small Business Owners.’ This special guarantee focuses on extending the principal repayment period for small business owners whose repayments are due after the COVID-19 special support and reducing financial burdens through interest subsidies.

Starting from the 30th of this month, a total of 300 billion KRW will be provided to small business owners with low credit ratings (personal credit score of 839 or below) who use the Gyeonggi Credit Guarantee Foundation’s guarantee certificates. Eligible small business owners can receive up to 100 million KRW per business and benefit from extended loan repayment terms. The repayment conditions include a 3-year grace period and a 3-year principal installment repayment, with a 2% interest subsidy and a 1% guarantee fee exemption.

Gyeonggi Province will also carry out a ‘Small Business Sales Channel Support Project Linked with Large E-commerce Platforms,’ collaborating with financially sound large e-commerce platforms to help small businesses (SMEs) in the province develop distribution channels and promote their brands.

Selected 100 small businesses (SMEs) in the province will receive marketing support such as banner advertisements on e-commerce platform mobile or PC main pages, establishment of dedicated permanent stores (Gyeonggi Province Win-Win Store), and issuance of promotional coupons.

Earlier, to celebrate Chuseok, Gyeonggi Province temporarily raised the discount rate of local currency by city and county from the original 7% to 10%. Additionally, until the end of this month, a payback promotion is underway, giving 10% back in Onnuri gift certificates or local currency to customers who purchase more than 50,000 KRW at traditional markets and neighborhood commercial districts.

Heo Seung-beom, Director of the Gyeonggi Province Economic Office, said, "We expect this ‘Livelihood Recovery Let’s Go! Small Business Owners Cheer Up! Project’ to be a successful targeted policy for the recovery of the livelihood economy," adding, "Gyeonggi Province will continue to do its best to create a healthy economic ecosystem that can enhance the competitiveness of small business owners and enable substantial income increases."

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