Korea Credit Guarantee Fund Launches 330 Billion Won Financial Support for Busan SMEs

Korea Credit Guarantee Fund, in cooperation with Busan Bank and the city of Busan, is launching a financial support program worth 330 billion won to support local small and medium-sized enterprises (SMEs).

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On March 12, Korea Credit Guarantee Fund announced that it had signed the "Busan Next Route Special Financial Support Business Agreement for Revitalizing the Local Economy and Expanding Productive Finance" with Busan Bank, the city of Busan, the Busan Chamber of Commerce and Industry, and the Next Generation Entrepreneurs Club. This agreement was established to improve financial accessibility for outstanding SMEs in the Busan region and to revitalize the local economy through customized financial support.

Under the agreement, Busan Bank will contribute 10 billion won to Korea Credit Guarantee Fund, which will use these resources to provide approximately 330 billion won in guarantee-based financial support. Eligible recipients include SMEs in Busan with strong growth potential, such as companies engaged in new growth engine industries, exporters and companies expanding overseas, and enterprises operating in regional base industries.

Korea Credit Guarantee Fund will apply a 100% guarantee ratio for three years through the special contribution agreement guarantees and will support companies by reducing guarantee fees by up to 0.3 percentage points. In addition, through the guarantee fee support agreement guarantees, the fund will provide up to a 0.6 percentage point reduction in guarantee fees for two years to ease the financial burden on companies. The city of Busan will support interest payments of 2.0 percentage points per year for three years, up to a limit of 800 million won per company. The Busan Chamber of Commerce and Industry and the Next Generation Entrepreneurs Club will be responsible for guiding member companies and local businesses and encouraging their participation in the program.

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