Daegu Dalseong-gun Provides Special Guarantee of 10 Billion KRW for Small Business Owners

2% Interest Support for 2 Years

On the 15th, Dalseong-gun, Daegu, announced that it will promote special guarantee support and interest subsidy projects for small business owners in the region who are struggling with financial difficulties due to the prolonged economic downturn and high interest rates, aiming to alleviate their loan interest burdens.

On the same day, Choi Jae-hoon, the head of Dalseong-gun, Daegu Credit Guarantee Foundation Chairman Hwang Byeong-wook, NongHyup Bank Dalseong-gun Branch Manager Song Jeong-geun, and Daegu Bank Hwawon Branch Manager Jo In-cheol signed an agreement to provide management stabilization funds to small business owners facing difficulties due to the high-interest loan policies of commercial banks.

Hwang Byung-wook, Chairman of the Daegu Credit Guarantee Foundation (left in the photo), Choi Jae-hoon, Mayor of Dalseong County (second from the left), Song Jeong-geun, Head of NongHyup Bank Dalseong Branch (second from the right), and Jo In-cheol, Manager of Daegu Bank Hwawon Branch, are posing for a photo after signing a business agreement for a special guarantee worth 10 billion KRW for small business owners in the Dalseong area of Daegu.

Dalseong-gun, Daegu, will contribute 1 billion KRW to the Daegu Credit Guarantee Foundation and, based on ten times the contribution amount, 10 billion KRW, will provide full guarantees through the foundation to lend management stabilization funds to local small business owners via NongHyup Bank Dalseong-gun Branch and Daegu Bank Hwawon Branch. The contribution amount is the highest single contribution among the districts and counties of Daegu City implementing the special guarantee project.

The special guarantee application targets small business owners whose business addresses are in Dalseong-gun, who have registered their businesses with the relevant tax office, and are conducting business activities. The support limit is up to 30 million KRW. The loan interest rate is CD rate (91-day) + 1.99%, with Dalseong-gun supporting 2% of the loan interest for two years. Repayment options include a 2-year grace period followed by 3 years of equal principal installments or a lump-sum repayment after 2 years.

In particular, to facilitate financing for low-credit small business owners with weak collateral, guarantees and support of up to 5 million KRW will also be provided.

Applications will be accepted from the 24th until funds are exhausted, excluding restricted industries such as entertainment businesses, gambling, leisure, and speculation.

Choi Jae-hoon, head of Dalseong-gun, Daegu, stated, “We hope to reduce the financial burden on small business owners struggling due to the economic downturn caused by COVID-19 and high interest rates, and to help stabilize their management even a little.”