Gyeonggi Province Expands Financial Support for Social Economy Organizations... Interest Subsidies of 2.5% for Up to 5 Years

Gyeonggi Province is rolling out financial and investment support programs for social economy organizations that lack capital and collateral. The main programs are: ▲ special guarantees and interest subsidies ▲ special loans for social economy organizations ▲ support for cooperative asset-building ▲ creation of the Gyeonggi Impact Fund.

The special guarantee and interest subsidy program will be operated through the Gyeonggi Credit Guarantee Foundation with a total scale of 10 billion won. Each business can receive guarantees of up to 500 million won. Gyeonggi Province will subsidize 2.5% of the loan interest rate for five years. Applications can be made by reserving a consultation with the Gyeonggi Credit Guarantee Foundation and then visiting the relevant branch, or by using the mobile app Easy One.

The special loan program for social economy organizations, in which expanded interest support significantly reduces financial burdens, will be implemented with a total scale of 20 billion won through an agreement among the National Credit Union Federation of Korea, local credit unions, and Gyeonggi Province. Starting this year, the loan interest support rate will be increased from the previous 2.0% to 2.5%, and the support period will be extended from four years to five years, thereby reducing financial burdens. To apply, applicants must first submit a consultation application form by email (socialeconomy@cu.co.kr), and then visit a nearby branch among the 27 local credit unions that have agreements with Gyeonggi Province.

Gyeonggi Provincial Government

The cooperative asset-building support program, designed to help realize the dream of securing one's own office, provides low-interest loans so that social economy organizations can purchase buildings, spaces, facilities, and other assets for long-term use. It is intended to help them secure their own premises instead of renting, thereby achieving greater management independence. Within a total budget of 3 billion won, each enterprise can receive up to 1 billion won, and up to 90% of the purchase cost, in loans at a fixed interest rate of 2.0%. Recruitment of beneficiary enterprises will take place in March.

Song Eunsil, Director General of the Social Innovation and Economy Bureau of Gyeonggi Province, said, "Social finance is not just about providing funds; it is a key tool for creating social value and realizing an inclusive economy," adding, "We will build a Gyeonggi-style social finance ecosystem in which investment and growth form a virtuous cycle."

Meanwhile, Gyeonggi Province and the Gyeonggi Social Economy Center have so far created nine Gyeonggi Impact Funds and invested a total of 18.3 billion won in 19 companies, including social enterprises and social ventures in the province. Going forward, they plan to continue expanding the social finance investment network through investor meetup days, meetings with fund managers, and other activities.

The Gyeonggi Impact Fund is a blended public-private investment fund that invests in social economy organizations with innovation and growth potential. Rather than focusing solely on financial returns, it simultaneously pursues social outcomes such as job creation, support for vulnerable groups, and solutions to environmental and local issues.

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