Baemin Supports 10.5 Billion KRW Agreement-Backed Loan

Shinbo Central Association Implements Guaranteed Loan Program in Partnership with KB Kookmin Bank

Woowa Brothers, the operator of Baedal Minjok (CEO Lee Guk-hwan), announced on the 7th that it will implement a 105 billion KRW guaranteed loan program in partnership with the Korea Credit Guarantee Fund (hereinafter referred to as KCGF), KB Kookmin Bank, and others to support small business owners in the food service industry and traditional markets.

This guaranteed loan program is a win-win financial initiative designed to support small business owners and traditional market merchants who urgently need funds for business operations. It issues guarantees for insufficient credit to food service self-employed individuals and traditional market merchants who face difficulties in securing loans due to low credit ratings or lack of collateral, and provides loans with preferential benefits applied separately.

The guaranteed loan program is also a representative voluntary regulation activity by Woowa Brothers aimed at win-win cooperation with small business owners. Previously, on the 7th of last month, Woowa Brothers announced the progress and future plans of voluntary regulation activities such as support for small business loan programs, establishment of a delivery service mutual aid association, formation of a dispute mediation council, and improvement of the review ecosystem at a meeting to expand platform win-win cooperation.

For this guaranteed loan program, Woowa Brothers and KB Kookmin Bank each contributed 3.5 billion KRW (a total of 7 billion KRW) as guarantee funds. Based on this, KCGF operates a loan program worth 105 billion KRW. KCGF uses the funds contributed by Woowa Brothers as guarantee resources to issue guarantees to small business owners, who can then obtain loans from banks using these guarantees. KB Kookmin Bank applies a preferential interest rate of 2 percentage points per annum to the guaranteed loans, enabling eligible small business owners to access loans at lower interest rates.

The support targets are self-employed food service operators and small business owners operating in traditional markets. Additionally, to revitalize the local commercial district, small business owners with business locations in the Itaewon area of Yongsan-gu, Seoul (Itaewon 1 and 2-dong) can apply for loans regardless of whether they are in the food service industry or other sectors. Kim Jung-hyun, Head of Value Management at Woowa Brothers, said, "This program was launched to support the stable business activities of small business owners in the food service industry and traditional markets," adding, "We will strive to help establish a foundation where small business owners can grow healthily through collaboration with various institutions and companies."