Gangwon-do Expands 'Small Business Management Stabilization Fund' by 200 Billion Won

Gangwon Province, NongHyup Bank, Shinhan Bank, and Gangwon Credit Guarantee Foundation Sign Business Agreement
Early Funding Support of 120 Billion KRW to Begin from January 31

[Asia Economy Reporter Ra Young-cheol] Gangwon Province announced on the 1st that it has signed an agreement with three institutions, including Gangwon Credit Guarantee Foundation, Shinhan Bank, and NongHyup Bank, to support small business owners with management stabilization funds totaling around 200 billion KRW this year.

The '2023 Gangwon-do Small Business Management Stabilization Fund Financial Support' business agreement ceremony was held at the Gangwon Provincial Government Office on January 31.
[Photo by Gangwon-do]

According to the province, the support scale for small business owners' management stabilization funds is 120 billion KRW in the first half and 80 billion KRW in the second half. Small business owners can apply for up to 50 million KRW per person at two banks, Shinhan Bank and NongHyup Bank, and receive benefits such as an annual interest rate of 2% and a guarantee fee of 0.8%.

The guarantee limit has been expanded from 100 million KRW last year to less than 200 million KRW, and as a special condition, repayment can be made without early repayment fees.

The province separately operates a loan fund of 10 billion KRW for good price businesses, providing an additional 0.8% interest support on top of the basic 2% interest support.

Starting this year, small business owners who prepare the necessary documents and apply for funds at the bank will be provided with a 'loan one-stop service' that allows loans without a separate visit to the Credit Guarantee Foundation.

Jung Kwang-yeol, Deputy Governor for Economic Affairs, said, "The expansion of management stabilization funds for small business owners will play a significant stepping stone role in strengthening practical financial support for small business owners struggling in a high-interest rate environment," and added, "We hope the economy recovers soon and will spare no effort to support small business owners, who are the foundation of the local economy.”