On the 18th, Pohang City and Saemaeul Geumgo Chairpersons' Council Each Contribute 1.08 Billion Won
Nation's Largest Fund at 93.56 Billion Won... Creating Special Guarantee Funds for Small Business Owners
Pohang City held the "Pohang City Small Business Hope Partnership Special Guarantee Fund Contribution Meeting" on the 18th in the City Hall External Cooperation Office, together with the Pohang City Saemaeul Geumgo Chairperson Council, to provide financial support benefits for small business owners.
Pohang Saemaeul Geumgo Council contributed over 100 million won to the Special Guarantee for Small Business Owners.
At this event, the city and the Pohang City Saemaeul Geumgo Chairperson Council agreed to establish a special guarantee fund of 2.16 billion KRW, with each party contributing 108 million KRW.
With the additional contribution to the special guarantee fund from the Pohang City Saemaeul Geumgo Chairperson Council, Pohang City has now reached a total of 93.56 billion KRW in special guarantee funds, following the previously implemented Hope Partnership 91.4 billion KRW special guarantee through public-private matching projects.
In February, the city became the first local government to sign a business agreement for a "Hope Partnership Special Guarantee Fund of 30 billion KRW" with Daegu Bank and Gyeongbuk Credit Guarantee Foundation. Following this, Pohang Suhyup and Ocheon Credit Union contributed 50 million KRW and 20 million KRW respectively, raising an additional 1.4 billion KRW.
Due to the high popularity among small business owners and the rapid depletion of funds, an additional 3 billion KRW was contributed by Daegu Bank in June, securing an additional 60 billion KRW and creating Pohang City's special guarantee fund of 91.4 billion KRW, the largest among basic local governments.
The Small Business Hope Partnership Special Guarantee offers a maximum guarantee limit of 50 million KRW per small business owner, and up to 100 million KRW for young entrepreneurs within three years of starting their business and small business owners with multiple children.
Pohang City directly supports 3% of the loan interest for two years. Repayment terms can be selected between a two-year grace period followed by three years of equal principal installments, or a lump-sum repayment after two years.
Applications for the special guarantee will continue until the budget is exhausted. Small business owners seeking consultation should prepare the required documents, such as an ID card and business registration certificate, and apply at the Gyeongbuk Credit Guarantee Foundation or the relevant financial institution.
After applying, the loan limit will be determined through a guarantee review, and once the guarantee certificate is issued by the foundation, applicants can apply for the loan at the bank.
Applications for special guarantees due to the additional contribution will be implemented later through agreements with the relevant financial institutions. Once the guarantee products are launched, applications can be made via the Pohang City website announcement or by inquiring at the relevant financial institution.
Mayor Lee Kangdeok said, "The public-private partnership Hope Partnership Special Guarantee Project, which Pohang City is the first in the nation to promote, will become a model case of cooperation between local governments and financial institutions. Next year, we aim to establish a guarantee fund of 150 billion KRW and will do our best to encourage more financial institutions to participate so that small business owners do not face difficulties in securing funds."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
