Incheon City Supports Special Guarantee Loans and Interest Subsidies for Social Economy Enterprises

by Park Haesook

Published 03 Feb.2025 14:19(KST)

Incheon City announced on the 3rd that it will continue to provide financial support to social economy enterprises in the region this year as well.

To alleviate the management difficulties of social economy enterprises experiencing challenges such as decreased sales due to the economic downturn, the city is cooperating with the Korea Credit Guarantee Fund, Incheon Credit Guarantee Foundation, and Shinhan Bank to provide interest subsidy support through special guarantees (compensation for interest rate differences).

The support targets social economy enterprises with headquarters or main business sites in Incheon that have received guarantee certificates through the Korea Credit Guarantee Fund and the Incheon Credit Guarantee Foundation. Depending on the type of enterprise, social enterprises and cooperatives can receive loans up to 300 million KRW, while village enterprises and self-sufficiency enterprises can receive up to 100 million KRW. Additionally, an interest subsidy benefit of 2% per annum is provided for three years after the loan.

Applications can be made by scheduling a consultation at the Korea Credit Guarantee Fund branch or any branch of the Incheon Credit Guarantee Foundation that has jurisdiction over the business location, or by visiting directly to receive support.

Incheon City Hall

Since July 2020, the city has supported a total of 13.4 billion KRW in special guarantee loans to 139 companies over five years and has provided 571 million KRW in interest subsidies.

An official from Incheon City stated, "We hope that this financial support will practically help improve the financial conditions and stabilize the management of social economy enterprises in the region," and added, "We will continue to support them through various policies, including expanding public procurement, so that social economy enterprises can establish themselves as an important pillar of the local economy."