Yongin City Implements Special Guarantee Program Worth 24 Billion KRW for Small Business Owners

Unsecured Loans Up to 50 Million KRW... Interest and Fees Also Supported
'Small Business and Neighborhood Commercial District Support Projects Briefing' to Be Held on the 22nd

Yongin City in Gyeonggi Province announced on the 20th that it will implement a special guarantee program to help small business owners facing financial difficulties due to the economic downturn.

This program supports small business owners with low credit ratings who have difficulty accessing institutional finance by enabling them to receive unsecured loans through the Gyeonggi Credit Guarantee Foundation. When the city invests in the Credit Guarantee Foundation, it issues guarantees up to ten times the invested amount to enhance the creditworthiness of small business owners. This year, Yongin City's special guarantee fund amounts to 24 billion KRW.

The support targets small business owners who have operated their businesses in Yongin City for more than two months. Unsecured loans of up to 50 million KRW per business are available. Along with the special guarantee, the city will support an annual loan interest rate of 3% and a guarantee fee of 1% of the loan amount for one year.

The city especially offers a 5% annual loan interest support for one year to small business owners who suffered damage from the heavy snowfall in November last year. Small business owners wishing to apply for loans can consult with and submit applications to the Yongin branch of the Gyeonggi Credit Guarantee Foundation.

In addition to the special guarantee, the city added that it will promote various support projects starting this year based on a three-year basic plan established to support small business owners and neighborhood commercial districts. To this end, the city will hold an explanatory meeting on the '2025 Small Business and Neighborhood Commercial District Support Projects' on the 22nd at the convention hall on the 3rd floor of City Hall.

At the explanatory meeting, related organizations such as the city, Small Enterprise and Market Service, Gyeonggi-do Market and Commercial District Promotion Agency, and Gyeonggi Credit Guarantee Foundation will introduce sector-specific support projects and application procedures. Detailed information can be found on the Yongin City website under city news.

A city official said, "We hope the special guarantee program will help small business owners struggling due to reduced consumer sentiment," adding, "We will continue to prepare various policies to support small business owners."

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