[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is increasing the budget for loans to improve facilities of food manufacturing and processing businesses and food service establishments, as well as operating funds for exemplary restaurants and hygiene grade designated businesses.
On the 3rd, Gyeonggi Province announced that it has increased the loan support budget, which provides low-interest loans at an annual rate of 1% to food-related businesses in the province struggling with business operations and facility maintenance this year, from the previous 6 billion KRW to 7.5 billion KRW, an increase of 1.5 billion KRW.
The loan limits are up to 500 million KRW for manufacturing and processing businesses and up to 100 million KRW for food service establishments. Exemplary restaurants and hygiene grade designated businesses can receive operating fund loans up to 30 million KRW.
The province determines the possible loan amount by reviewing each business’s personal financial credit rating and collateral status. If credit or collateral is insufficient, loans can be provided in the form of credit guarantee collateral through the Gyeonggi Credit Guarantee Foundation.
The support targets are businesses located in Gyeonggi Province. Businesses wishing to apply for loans can inquire by phone or visit any branch of NongHyup Bank (excluding regional NongHyup branches) near the hygiene department of each city or county.
Kang Seon-mu, Director of the Food Safety Division of the province, said, "We have significantly increased the support funds to help more food-related businesses facing economic difficulties. We hope that many business owners will reduce their operational burdens and provide safer food to residents, enabling mutual growth."
Since 1993, Gyeonggi Province has provided loans totaling 168.8 billion KRW to 3,782 businesses through this program.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
