Osan City Expands Special Guarantee for SMEs and Small Business Owners

Gyeonggi Credit Guarantee Foundation Contributes 700 Million KRW for Special Guarantee Fund

Osan City in Gyeonggi Province announced on the 18th that it has contributed 700 million KRW as a special guarantee fund to the Gyeonggi Credit Guarantee Foundation to protect small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties due to high inflation, rising raw material costs, and increased oil prices.

The special guarantee project is a system where Osan City allocates a budget to the Gyeonggi Credit Guarantee Foundation to support SMEs and small business owners in the city who have difficulty securing funds, allowing them to receive loans under more relaxed screening criteria compared to commercial banks.

With this contribution, the city expects to be able to recommend special guarantees up to 7 billion KRW, which is ten times the contributed amount, to respond to the urgent funding needs of SMEs and small business owners.

In particular, the city explained that small business owners can also receive additional support through interest subsidy funds covering part of the interest (2%) on funds secured via the special guarantee.

The special guarantee limit is up to 300 million KRW per company for SMEs and up to 50 million KRW for small business owners. Support is provided after screening by the Gyeonggi Credit Guarantee Foundation and recommendation by Osan City.

For detailed information regarding the special guarantee, inquiries can be made to the Gyeonggi Credit Guarantee Foundation Osan branch, Osan City Regional Economy Team, or Corporate Support Team.

An official from Osan City stated, "We will strive to expand practical support for SMEs and small business owners struggling with high interest rates and economic downturns, aiming to lead to the revitalization of the local economy."