Mokpo City Supports Startup Seed Money for Young Entrepreneurs

Loan up to 30 million won without collateral at low interest rates

[Asia Economy Honam Reporting Headquarters Reporter Seunghyun Jeong] Mokpo City, Jeollanam-do announced on the 14th that it will continue the Seed Money Support Project this year, which has been promoted since 2019 to alleviate the financial difficulties of young entrepreneurs who lack the ability to secure initial startup funds.

The Seed Money Support Project is a program where Mokpo City invests 300 million KRW, and the Jeonnam Credit Guarantee Foundation guarantees 3 billion KRW, which is ten times the investment. Young entrepreneurs pay a certain level of guarantee fee (below 1%) to the regional credit guarantee foundation and can receive unsecured loans of up to 30 million KRW at low interest rates from financial institutions.

When using general guarantees, the average interest rate is 3.22% with a guarantee fee rate of 0.9%, but under the Seed Money Support Project, only an average interest rate of 1.29% and a guarantee fee rate of 0.8% are required.

Eligibility requires that the business location and the young entrepreneur’s registered address be in Mokpo City, and the applicant must be a young entrepreneur aged between 18 and 39. The Jeonnam Credit Guarantee Foundation supports all applicants who meet the eligibility criteria until the investment funds are exhausted. Those wishing to participate must prepare a business registration certificate, lease contract, and ID card and apply in person at the Jeonnam Credit Guarantee Foundation.

A survey conducted last year on 159 participants of the Seed Money Support Project by Mokpo City and the Jeonnam Credit Guarantee Foundation showed that the project positively contributes to the survival and job retention of young entrepreneurs.

For more detailed information regarding the Seed Money Support Project, please contact the Jeonnam Credit Guarantee Foundation.