Daejeon City Introduces New Special Guarantee for Small Business Owners with Faithful Loan Repayment

225 Billion Won for Small Business Owners,
45 Billion Won for 'Ttaenggyeoyo' Franchisees

Kwon Kyungmin, Director of the Economic Bureau of Daejeon City (Photo by Mo Seokbong)

On September 8, Kwon Kyungmin, Director of the Economic Bureau of Daejeon City, held a press conference at the press room and announced, "Starting this month, a total of 27 billion won in special support funds will be injected to ease the financial burden on small business owners experiencing management difficulties due to the economic downturn and reduced consumption."

The recipients of this support are small business owners who have faithfully repaid their loans, with approximately 27,000 businesses expected to benefit. The program also targets small business owners affiliated with the 'Ttaenggyeoyo' delivery platform, which features a low-fee structure to promote mutual growth.

In particular, the special guarantee for small business owners with a record of faithful repayment is a new system being introduced for the first time nationwide. It is designed to address concerns about reverse discrimination against these business owners, who may feel relatively disadvantaged by the government's recent debt relief policies, and to promote a culture of responsible repayment.

Through this initiative, small business owners who have responsibly repaid their debts despite difficult circumstances will be given an opportunity to make a fresh start, and it is expected to contribute to the soundness of the financial market as well.

The special guarantee for 'Ttaenggyeoyo' franchisees will support the expansion of low-fee delivery apps, thereby enhancing the self-sufficiency of small business owners and revitalizing local neighborhood economies.

The funding consists of 22.5 billion won for small business owners with a record of faithful repayment and 4.5 billion won for 'Ttaenggyeoyo' franchisees. This fund was created based on contributions totaling 1.5 billion won from Hana Bank (1 billion won), Woori Bank (300 million won), and Nonghyup Bank (200 million won). The fund for 'Ttaenggyeoyo' franchisees was established with a 300 million won contribution from Shinhan Bank.

Each business can receive up to 70 million won, and an interest subsidy of 2.7% per year will be provided for two years, which is expected to significantly alleviate the financial burden.

Applications can be submitted through the 'Bojeung Dream' app from September until the funds are exhausted. Consultations and reviews will be conducted at the Daejeon Credit Guarantee Foundation and each participating bank branch.

Lee Jangwoo, Mayor of Daejeon, stated, "This special support fund will serve as a strong financial pillar for small business owners who have faithfully repaid their debts and for 'Ttaenggyeoyo' franchisees who are committed to mutual growth in the region. We will continue to closely monitor the challenges facing small business owners and accelerate the recovery of the local economy with effective financial policies."

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