Gwangyang City, Financial Institutions Small Business Loan Interest Subsidy Agreement

Support of up to 30 million KRW per company, within 5% annually

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] On the 1st, Gwangyang City in Jeonnam announced that it held a business agreement ceremony with local financial institutions in the city hall reception room to promote the management stability of small business owners facing difficulties.

The agreement ceremony was attended by Jeong In-hwa, Mayor of Gwangyang, Kim Jin-bae, Director of Donggwangyang Financial Center at Gwangju Bank, Son In-woo, Branch Manager of IBK Industrial Bank Gwangyang Branch, Jang Young-jo, Head of Gwangyang Branch of NH Nonghyup Bank, Yang Bo-kyung, Head of Gwangyang POSCO Financial Center at Woori Bank, Ahn Se-min, Branch Manager of Hana Bank Gwangyang Branch, and Lee Dong-hoo, Credit Team Leader of MG Gwangyang Saemaeul Geumgo.

Gwangyang City held a business agreement ceremony on the 1st at the city hall reception room to support interest subsidy loans in cooperation with local financial institutions to stabilize the management of small business owners facing difficulties.
Photo by Gwangyang City

Both parties agreed to jointly strive to ensure there are no inconveniences in supporting the interest subsidy for small business owners' loans.

The loan amount is up to 30 million KRW per company, with a loan period within 2 years from the loan date. The loan interest rates are ▲ capped at 5.5% per annum when secured by a general guarantee from the Jeonnam Credit Guarantee Foundation (including CD rate (91 days) and an additional rate of 1.7%) ▲ capped at 5% per annum under the same interest rate conditions as the general guarantee when secured by a full guarantee. The agreement was signed under these terms.

The interest subsidy application targets are small business owners who have a business place in Gwangyang City and have operated for more than 3 months, have no record of loan delinquency within the last 3 months, have no outstanding national or local taxes, and have not been registered as credit management information subjects within the last 3 months.

However, industries falling under Article 9, Paragraph 4 of the "Gwangyang City Small Business Support Ordinance" are excluded.

Jeong In-hwa, Mayor of Gwangyang, said, "Although small business owners are facing difficulties due to interest rate hikes and economic recession, we hope that the interest subsidy will help revitalize small business owners."

Jang Young-jo, Head of NH Nonghyup Bank Gwangyang Branch, said, "We understand the difficulties of small business owners and will do our best to ensure they can receive loans promptly."

Meanwhile, Gwangyang City established the basis for increasing the interest subsidy from 3% to 5% through a partial amendment of the "Gwangyang City Small Business Support Ordinance" in 2022.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr