Gwangyang City Supports 5% Interest on Small Business Loans

Jeonnam's First, 2-Year Grace Period with Lump-Sum Repayment

Up to 30 Million Won Loan, Program Starts from the 6th

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Gwangyang City, Jeonnam announced that it will implement the ‘2023 Gwangyang City Small Business Loan Interest Subsidy Support Project’ starting from the 6th to alleviate the financial difficulties of small business owners caused by the worsening economic and management environment of the 3 highs (high interest rates, high prices, high exchange rates).

This project is a system that supports 5% of the loan interest for two years from the city’s budget to small business owners who have borrowed up to 30 million KRW from six financial institutions that signed a business agreement with the city on the 1st.

Gwangyang City will implement the 'Small Business Loan Interest Subsidy Support Project' starting from the 6th to alleviate the financial difficulties of small business owners caused by the worsening economic and management environment characterized by the three highs (high interest rates, high prices, high exchange rates).
Photo by Gwangyang City

The city prepared the basis for increasing support from 3% to 5% by partially revising the ‘Gwangyang City Small Business Support Ordinance’ to reduce the burden on small business owners due to soaring interest rates, and secured the 2023 budget to expand interest support.

The applicants are small business owners who have operated their business in Gwangyang City for more than three months. However, entertainment bars, e-commerce retail businesses, adult game rooms, legal/accounting/tax services, etc. are excluded from the funding support.

This year, interest will be supported for about 300 newly recommended loans and about 600 small business owners who borrowed loans from 2021 to 2022, with a support budget of 990 million KRW.

Small business owners who wish to apply should visit the Jeonnam Credit Guarantee Foundation Gwangyang Branch (52 Oryu-ro, Gwangyang City, 2nd floor of IBK Bank) to consult on the possibility of issuing a guarantee certificate, and then submit the application form and required documents to the Regional Economy Division of the city hall.

After the issuance of the recommendation letter, loans can be obtained from financial institutions that have signed agreements with the city.

The financial institutions that have signed agreements with the city are ▲Gwangju Bank (Donggwangyang Financial Center, Gwangyang Branch) ▲IBK Industrial Bank of Korea (Gwangyang Branch) ▲NH Nonghyup Bank (Gwangyang City Branch, Donggwangyang Branch) ▲Woori Bank (Gwangyang POSCO Financial Center) ▲Hana Bank (Gwangyang Branch) ▲Gwangyang City Saemaeul Geumgo (Head Office).

Jung Yong-gyun, head of the Regional Economy Division, said, “We hope that many small business owners in the region who are struggling due to the 3 highs will apply for this project and that it will help stabilize their management.”

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