Si Seok-jung, Chairman of Gyeonggi Credit Guarantee Foundation (4th from the right), is taking a commemorative photo after signing an agreement on SME fund support with the Bank of Korea Gyeonggi Headquarters and commercial banks on the 5th.
The Gyeonggi Credit Guarantee Foundation is injecting a total of 500 billion KRW in funds into companies by partnering with six banks in the province, including the Bank of Korea Gyeonggi Headquarters and NongHyup Bank, to revitalize the local economy.
On the 5th, Gyeonggi Credit Guarantee Foundation announced on the 7th that it signed a "Business Agreement for Linked Support of Bank of Korea Gyeonggi Headquarters Small and Medium Enterprise Support Fund (C2 Fund) for Fostering Promising Growth Companies in Gyeonggi Province" together with the Bank of Korea Gyeonggi Headquarters and six banks at the second-floor conference room of its main office in Gwanggyo, Suwon.
This business agreement is a follow-up measure to the "Measures to Improve the Efficiency of SME Funding in the Gyeonggi Region" from the 2nd Policy Council held in September by Gyeonggi Province, Gyeonggi Credit Guarantee Foundation, and the Bank of Korea Gyeonggi Headquarters.
Gyeonggi Credit Guarantee Foundation explained that it signed the agreement to actively cooperate with Gyeonggi Province Governor Kim Dong-yeon's policy of pursuing expansionary fiscal policy to enhance the growth potential of the Korean economy and to help reduce the financial burden on promising growth companies and revitalize the local economy together with financial institutions in the province.
According to the agreement, Gyeonggi Credit Guarantee Foundation will provide credit guarantees for working capital loans to promising SMEs and small business owners in the province, and financial institutions will handle loans applying the agreed interest rates. The Bank of Korea Gyeonggi Headquarters will allocate C2 funds up to 50% of the loan amount. The Bank of Korea Gyeonggi Headquarters plans to supply funds to the financial institutions at a low interest rate (2% as of the end of November 2023).
The scale of the C2 fund-linked guarantee support by Gyeonggi Credit Guarantee Foundation and the Bank of Korea Gyeonggi Headquarters is a total of 500 billion KRW. The guarantee limit is 800 million KRW per company (100 million KRW for small business owners), and the loan period is up to five years.
Gyeonggi Credit Guarantee Foundation offers a preferential guarantee ratio of up to 100% and applies a fixed annual guarantee fee rate of 1%. Additionally, financial institutions will provide loan interest rates within the agreed interest rate ceiling for companies supported by the C2 fund-linked guarantee.
Gyeonggi Credit Guarantee Foundation also agreed to closely cooperate with the Bank of Korea Gyeonggi Headquarters on joint research for academic purposes, such as surveys on the actual conditions of companies in the province.
This business agreement is expected to create a synergy effect by supporting the active financial support of Gyeonggi Credit Guarantee Foundation, thereby reducing the financial burden on companies in the province and stabilizing management.
Si Seok-jung, Chairman of Gyeonggi Credit Guarantee Foundation, said, "This business agreement is expected to create a synergy effect by supporting the active financial support of Gyeonggi Credit Guarantee Foundation, thereby reducing the financial burden on companies in the province and stabilizing management," and emphasized, "Going forward, Gyeonggi Credit Guarantee Foundation will continue to cooperate with related organizations to create a Gyeonggi Province regional economy full of abundant business success opportunities and strive to provide the best financial services."
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