Wando-gun Supports Special Guarantee for Small Business Owners

Full Guarantee Fee and 3% Interest Supported for 2 Years

Wando-gun, Jeollanam-do (Governor Shin Woo-cheol) will launch a project from March to support interest subsidy and guarantee fee assistance for loans targeting small business owners in the region.

According to the county on the 13th, to alleviate the financial difficulties faced by small business owners experiencing management crises due to economic recession and high interest rates, a business agreement was signed last month with the Jeonnam Credit Guarantee Foundation and seven financial institutions (Gwangju Bank, NH Nonghyup Bank, Wando Nonghyup, Nohwa Nonghyup, Wando County Forestry Cooperative, Wando Credit Union, Wando Jeil Credit Union).

Wando County Office Building Exterior
[Photo by Wando County]

Through the business agreement with the county, the Jeonnam Credit Guarantee Foundation will provide guarantees worth 1 billion KRW, which is 10 times the county's contribution of 100 million KRW, offering 100% full guarantees for loans up to 30 million KRW and 90% partial guarantees for loans exceeding 30 million KRW. The county will cover the entire guarantee fee.

As commercial bank loan interest rates continue to rise, the seven local financial institutions that signed the agreement with Wando-gun will apply an interest rate of 4.8% for fully guaranteed loans and 5.3% for partially guaranteed loans.

The county will provide an interest subsidy for two years at 3% of the applicable interest rate, up to a maximum of 3 million KRW. However, industries excluded under Article 12 (Exclusion Targets) of the “Wando-gun Small Business Support Ordinance” are not eligible.

For special guarantee support, applicants must visit the Jeonnam Credit Guarantee Foundation for prior consultation and then apply in person at the Small Business Support Team of the Economic and Transportation Division at Wando County Office.

The Wando office of the Jeonnam Credit Guarantee Foundation is located on the 2nd floor of the NH Nonghyup Bank (county branch) and operates from 9:30 a.m. to 4:00 p.m. on Mondays and Wednesdays.

A representative of one of the local financial institutions that signed the agreement said, “We will cooperate with Wando-gun’s policy projects and work together as a financial institution that supports small business owners.”

Heo Dong-jo, head of the Economic and Transportation Division, said, “We hope this project will help ease the worries of small business owners in the region even a little.”

For more details, please check the county government information (notices and announcements) on the Wando-gun website.

Honam Reporting Headquarters Reporter Choi Kyung-pil ckp6737@asiae.co.kr