Jeongeup-si Supports Special Guarantee for Small Business Owners... Up to 30 Million KRW

Jeongeup City in Jeonbuk is implementing a special guarantee support project to assist small business owners facing management difficulties due to high interest rates and economic recession.

According to the city on the 3rd, the special guarantee support project is a guarantee system in which the city allocates a budget to the Jeonbuk Credit Guarantee Foundation to help small business owners obtain low-interest loans of up to 30 million KRW from financial institutions.

Jeongeup City Hall. [Photo by Jeongeup City]

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Last year, the city allocated 250 million KRW and supported loans totaling about 2.7 billion KRW to small business owners. This year, the city has allocated 300 million KRW to expand the loan support scale to 3.33 billion KRW.

The support targets are small business owners who have a business place in Jeongeup, have been operating for more than three months, and have a credit rating of 4 or lower. The guarantee limit is up to 30 million KRW per small business owner, and the guarantee period is up to five years.

Loan interest support covers up to 3% of the interest exceeding 1% per annum of the loan interest amount. Repayment methods can be chosen between a one-year grace period followed by four years of equal principal repayments or five years of equal principal repayments.

Mayor Lee Hak-su said, “I hope the special guarantee support project will provide practical help to small business owners struggling to secure funds amid high inflation and high interest rates,” adding, “We will continue to expand support policies to restore the livelihood economy and stabilize the lives of economically vulnerable groups.”

Jeongeup = Kim Jae-gil, Honam Reporting Headquarters, Asia Economy baekok@asiae.co.kr

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