Pohang City Achieves Milestone with 31.4 Billion KRW in Special Guarantee Funds for Small Business Hope Partnership

300 Billion KRW in February and Additional 1.4 Billion KRW Special Guarantee Fund Established

Mayor Lee Kang-deok, "Committed to Preparing Financial Support Measures for Small Business Owners"

Pohang City will provide additional financial support for small business owners struggling with high interest rates and high inflation.

On the 24th, the city held the "Pohang City Small Business Owners Hope Companion Special Guarantee Fund Contribution Meeting" at the City Hall External Cooperation Office, together with the Pohang Fisheries Cooperative and the Gyeongbuk Ocheon Credit Cooperative, to prepare financial support benefits for more small business owners.

On the 24th, a 'Pohang City Small Business Hope Partnership Special Guarantee Fund Contribution Meeting' was held at City Hall together with the Pohang Fisheries Cooperative and the Gyeongbuk Ocheon Credit Cooperative. (From left: Im Hak-jin, Head of Pohang Fisheries Cooperative; Lee Kang-deok, Mayor of Pohang; Ha Sang-gon, Head of Gyeongbuk Ocheon Credit Cooperative)

At the meeting, Pohang Fisheries Cooperative and Ocheon Credit Cooperative agreed to create a special guarantee fund of 1.4 billion KRW, contributing 50 million KRW and 20 million KRW respectively.

With the additional contributions from Pohang Fisheries Cooperative and Ocheon Credit Cooperative, Pohang City has achieved a total special guarantee fund of 31.4 billion KRW, following the 30 billion KRW Hope Companion special guarantee implemented through the public-private matching project in February.

The previously established special guarantee fund has been very popular, with over 12 billion KRW already utilized within about a month, thanks to the enthusiastic response from small business owners.

Pohang City will support 3% interest on the Hope Companion special guarantee fund for two years, and the Gyeongbuk Credit Guarantee Foundation will issue guarantee certificates for loans to small business owners.

Applications for special guarantees due to additional contributions will be implemented later through individual agreements with the respective financial institutions. Once the guarantee products are launched, applications can be made through announcements on the Pohang City website and inquiries at the respective financial institutions.

The Hope Companion special guarantee for small business owners offers a maximum guarantee limit of up to 20 million KRW per person, and for young small business owners within six months of starting their business, support of up to 50 million KRW is available. Loan support is available to all small business owners in Pohang except for certain industries such as entertainment, gambling, and speculative businesses.

The city directly supports a 3% interest rate for two years, and repayment options include either a 2-year grace period followed by 3 years of equal principal payments or a lump-sum repayment after 2 years.

Since 2011, Pohang City has supported 8,137 local small business owners with a total of 135.1 billion KRW in special guarantees, contributing to reducing financial burdens and stabilizing management.

Since last year, refinancing funds have been allowed, and credit score requirements have been lifted, enabling small business owners of all credit grades to apply, significantly expanding the support target. Small business owners currently using high-interest general guarantees or those who have used Pohang City's special guarantees and whose interest support period has ended can now refinance to low-interest special guarantees.

Applications for special guarantees will continue until the budget is exhausted. Small business owners wishing to consult should prepare identification, business registration certificates, and other required documents to apply. After application, the loan limit is determined through guarantee screening, and after receiving the guarantee certificate from the foundation, applicants can visit a bank to apply for the loan.

Mayor Lee Kang-deok said, "I hope this additional contribution to the special guarantee will help alleviate the financial burdens of small business owners struggling with funding difficulties," and added, "The city will continue to do its best to prepare financial support measures for small business owners that suit local conditions."