150 Billion KRW Support for Small Business Management Stability... Pohang City and Gyeongbuk Credit Guarantee Foundation Business Agreement

Loan within 20 Million KRW · 3% Interest Support for 2 Years

Credit Score Criteria Lifted · Significant Expansion of Support Targets

On the 5th, Pohang City signed a business agreement with the Gyeongbuk Credit Guarantee Foundation to support small business owners' management stabilization funds at the City Hall External Cooperation Office, attended by Deputy Mayor Kim Nam-il and Chairman Kim Se-hwan of the Gyeongbuk Credit Guarantee Foundation.

On the 5th, Pohang City signed a business agreement with the Gyeongbuk Credit Guarantee Foundation at City Hall to support small business owners with management stabilization funds.

According to the city, through this agreement, a guarantee fund of 15 billion KRW will be established to assist small business owners facing financial difficulties due to the economic downturn caused by the three highs (high interest rates, high prices, and high exchange rates), and a 3% interest subsidy will be provided.

In particular, this year, the guarantee criteria have been significantly relaxed by removing the credit score requirement, and a new system for converting previously guaranteed loans (loans previously treated with the foundation's guarantee certificates) into Pohang City's special guarantees with interest subsidies has been introduced to reduce the financial burden on small business owners.

The support targets are small business owners who have a business place registered in Pohang City as of the application date and have business registration. The credit score criteria applied until last year have been lifted, allowing small business owners of all credit ratings to apply for the program.

This management stabilization fund totals 15 billion KRW, with support up to 20 million KRW per company. For young small business owners within six months of starting their business, support up to 50 million KRW is available. The loan interest rate is 3% for two years, directly supported by Pohang City, and the loan conditions are either a two-year grace period followed by three years of equal installment repayments or a lump-sum repayment at the end of two years.

The application period starts from April 7 and continues until funds are exhausted. Applicants must bring identification and a copy of their business registration certificate and apply in person at the Pohang branch of the Gyeongbuk Credit Guarantee Foundation.

Deputy Mayor Kim Nam-il said, “We hope this management stabilization fund will help alleviate the financial burden on small business owners,” and added, “We will continue to do our best to prepare support measures for small business owners tailored to local conditions.”