Gyeonggi-do Provides Funding Support for 'Vulnerable Small Business Owners'... 20 Billion KRW Scale

Up to 50 Million KRW Loan per Company, 0.5% Interest Support Provided

Gyeonggi Provincial Government Northern Office

[Asia Economy Reporter Ra Young-cheol] Gyeonggi Province will launch a "Vulnerable Small Business Fund Support" program worth a total of 20 billion KRW starting next month to stabilize small business owners and low-income households.

According to the province on the 31st, the support scale is 20 billion KRW, the same as last year, and the program will end early once the funds are exhausted. The interest rate is fixed at 3.14% per annum, with Gyeonggi Province providing a 0.5% interest subsidy.

The target beneficiaries are small business owners in the province who are low-income and low-credit (annual income of 50 million KRW or less and a credit score of 744 or below) or socially vulnerable groups (unemployed heads of households in their 50s, persons with disabilities, multicultural or single-parent families, North Korean defectors, basic livelihood security recipients, near-poverty class, etc.).

Each business can receive up to 30 million KRW for "startup funds" and up to 20 million KRW for "business improvement funds." Small business owners recommended by city or county governments as needing "special support" can receive up to 50 million KRW.

A "compensation refund (payback) system" is applied, allowing diligent repayors to receive 20% of the normal interest burden back, and considering COVID-19 damages, a "principal repayment deferral system" is also in operation.

To ensure smooth fund supply, the Gyeonggi Credit Guarantee Foundation issues full guarantees (100% guarantee ratio), and the guarantee fee is set at a fixed 0.5% per annum.

Additionally, post-management services such as fund repayment management, listening to business difficulties, and consulting will be provided.

Kim Sang-su, head of the Regional Finance Division, said, "Since the purpose is to support the self-reliance and independence of small business owners and residents suffering from excessive debt, we will promote various financial support projects and policies for ordinary citizens, including management and supervision of lending businesses and prevention of illegal private loans."

This content was produced with the assistance of AI translation services.