Gwangju City Implements Special Guarantee for Youth Startups Worth 20 Billion Won

Up to 50 Million KRW for Young Entrepreneurs Under 39 Years Old and Within 7 Years of Startup

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 1st that starting from the 2nd until funds are exhausted, it will implement a special guarantee for youth startups worth 20 billion KRW to support young entrepreneurs struggling to secure startup capital.

This year, the Youth Startup Special Guarantee involves the Gwangju Credit Guarantee Foundation and seven financial institutions to promote startups among local youth and establish a growth foundation.

Young entrepreneurs aged 39 or younger and within seven years of starting their business, who have ideas and technical skills but face difficulties securing capital, can receive loans up to 50 million KRW.

A fixed interest rate as low as 2.5% applies for a one-year lump-sum repayment, and a variable interest rate averaging 2.5% (up to 2.8%) applies for a five-year installment repayment. Compared to the previous year, rates have been reduced by at least 0.1 percentage points and up to 0.3 percentage points.

The city will contribute 2 billion KRW to the Gwangju Credit Guarantee Foundation for youth startup business funds, and the foundation will provide loan guarantees for youth startups amounting to 20 billion KRW, which is ten times the contribution.

The participating banks for startup loans include Gwangju Bank, KB Kookmin Bank, IBK Industrial Bank, NH Nonghyup Bank, Woori Bank, Hana Bank, and Shinhan Bank. These banks will help reduce the financial burden on entrepreneurs by offering low-interest loans and contribute to creating a startup ecosystem in Gwangju.

Youth entrepreneurs located at local branches who wish to apply for startup loans can submit consultations through the Gwangju Credit Guarantee Foundation website. Upon approval, they will receive a special guarantee certificate and can apply for loans at the seven participating banks.

Son Hang-hwan, Director of Enterprise Development at the city, said, “We hope that the Youth Startup Special Guarantee will contribute to securing business funds and strengthening competitiveness for young entrepreneurs with creativity and technology in the region, and become a great driving force to revitalize the local economy.”