The Gyeonggi Credit Guarantee Foundation is partnering with KB Kookmin Bank to launch a guarantee support project worth 150 billion KRW.
On the 15th, Gyeonggi Credit Guarantee Foundation announced that it signed a "Business Agreement for Smooth Landing of Gyeonggi Province's Livelihood Economy and Win-Win Opportunities & Mobile Preferential Guarantee Financial Support through KB Kookmin Bank's Special Contribution" at the meeting room on the 2nd floor of Gyeonggi Credit Guarantee Foundation in Yeongtong, Suwon.
Gyeonggi Credit Guarantee Foundation and KB Kookmin Bank pursued this business agreement to contribute to early overcoming of the regional economic crisis by expanding financial support for small and medium-sized enterprises and small business owners in the province.
Si Seok-jung, Chairman of the Gyeonggi Credit Guarantee Foundation (right), is taking a commemorative photo after signing an agreement with Kim Jin-sam, Head of the Gyeonggi Regional Group at Kookmin Bank, on the 15th.
According to the agreement, KB Kookmin Bank will provide a special contribution fund of 10 billion KRW to Gyeonggi Credit Guarantee Foundation. The foundation will support a total guarantee of 150 billion KRW, which is 15 times the contribution amount, through a 120 billion KRW special contribution agreement guarantee and a 30 billion KRW KB Kookmin Bank mobile preferential guarantee.
The target for the agreement guarantee support is small and medium-sized enterprises and small business owners whose headquarters or business sites are located within the province. The support limit is up to 800 million KRW per company and 100 million KRW for small business owners. The guarantee period is up to 5 years.
The preferential guarantee support targets small business owners whose business sites are located within the province and who have been in business for more than one year as of the application date (excluding corporate enterprises and joint businesses). The support limit is up to 30 million KRW per company, and the guarantee period is 5 years.
To facilitate smooth loan execution and interest rate reduction effects for applying companies, the guarantee ratio for both the agreement guarantee and preferential guarantee will be preferentially applied from the existing 85% to 100%. However, for amounts exceeding 50 million KRW, the ratio is 90%. Additionally, the agreement guarantee will apply a guarantee fee rate reduced by 0.2 percentage points from the final calculated guarantee fee rate, and the preferential guarantee will apply a fixed guarantee fee rate of 0.75%.
Si Seok-jung, Chairman of Gyeonggi Credit Guarantee Foundation, said, "We expect that this business agreement with KB Kookmin Bank will lead to practical financial support for small and medium-sized enterprises and small business owners in the province who are pushed to the edge due to the prolonged economic downturn." He added, "Going forward, Gyeonggi Credit Guarantee Foundation will continue to work in step with Gyeonggi Province to create a regional economy full of opportunities for business success and serve as a pillar supporting Gyeonggi residents in overcoming crises and achieving business success."
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