Helping Closed Small Business Owners Restart... Incheon City Implements 22.6 Billion KRW 'Bridge Guarantee'

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City announced on the 18th that it will implement a 'Bridge Guarantee' worth 22.6 billion KRW to help small business owners who closed their businesses due to the prolonged COVID-19 pandemic to restart.

The Bridge Guarantee is a system that converts the existing business guarantee of closed small business owners into a personal guarantee. It allows for maturity extensions even after closure, reducing the burden of loan repayment and providing opportunities for future re-challenges.

The support targets small business owners who have closed their businesses and are using the Incheon Credit Guarantee Foundation, with guarantees expiring within one month, and who have a personal credit score of 990 or below or an annual income of 80 million KRW or less.

The guarantee limit is supported within the balance of the existing business guarantee, and the guarantee period can be selected up to a maximum of five years with an installment repayment method. The guarantee fee ranges from 0.5% to 0.9% depending on the guarantee period.

Byun Jooyoung, Head of the Job and Economy Headquarters of Incheon City, said, "As of the end of August, the closure rate of small business owners using the Incheon Credit Guarantee Foundation is about 10.4%," adding, "Through the Bridge Guarantee, we will actively support reducing the loan repayment burden of closed small business owners and enabling them to take on future challenges."

Small business owners who wish to apply for the Bridge Guarantee can inquire through each branch of the Incheon Credit Guarantee Foundation.