Pohang City and Saemaeul Geumgo Sign Agreement to Create 20 Billion KRW Special Guarantee for Hopeful Partnership

Public-Private Matching Project Creates Largest-Ever Special Guarantee Fund of 111.4 Billion Won Nationwide

Mayor Lee: "A Model Case of Local Governments and Financial Institutions Cooperating to Support Small Businesses"

On the 13th, Pohang City held a signing ceremony for the “Pohang City Small Business Hope Companion Special Guarantee Fund of 20 billion KRW” with the Pohang City Saemaeul Geumgo Council in the city hall’s main conference room.

Pohang City and Saemaeul Geumgo Council signed an agreement to establish a 20 billion won special guarantee fund for Hope Together.

At the ceremony, the city and the Pohang City Saemaeul Geumgo Council agreed to create a special guarantee fund of 20 billion KRW, with each party contributing 1 billion KRW.

This agreement was made as Pohang City was selected as a focused management model for the “2024 Regional Finance Cooperation Model Project” organized by the Ministry of the Interior and Safety in July. As a result, the 1 billion KRW contributed by Saemaeul Geumgo was provided as an incentive.

Starting with the signing of a business agreement for a “Hope Companion Special Guarantee Fund of 30 billion KRW” with Daegu Bank and Gyeongbuk Credit Guarantee Foundation in February, the city secured an additional 1.4 billion KRW as Pohang Suhyup and Ocheon Credit Union contributed 50 million KRW and 20 million KRW, respectively.

Due to the high popularity among small business owners, the funds were quickly exhausted, leading to an additional 3 billion KRW contribution from Daegu Bank in June. With this, the city secured an additional 6 billion KRW, creating a special guarantee fund of 91.4 billion KRW, the largest among local governments.

With the additional contribution from the Pohang City Saemaeul Geumgo Council, the total Hope Companion Special Guarantee Fund, implemented through public-private matching projects, has now increased from 91.4 billion KRW to 111.4 billion KRW.

The maximum guarantee limit per small business owner under the Hope Companion Special Guarantee is 50 million KRW. For young small business owners within three years of starting their business and those with multiple children, the maximum support increases to 100 million KRW.

Pohang City directly supports 3% of the loan interest for two years. Repayment options include a two-year grace period with three-year equal principal installments or a two-year lump-sum repayment.

Applications for the special guarantee will be accepted until the budget is exhausted. Small business owners wishing to apply should prepare the required documents, such as an ID card and business registration certificate, and apply through the Gyeongbuk Credit Guarantee Foundation or the relevant financial institution.

After application, the loan limit is determined through a guarantee review. Once the guarantee certificate is issued by the foundation, the applicant can apply for a loan through the bank.

Applications for special guarantees resulting from additional contributions will be implemented later through agreements with the relevant financial institutions. Once the guarantee products are launched, applications can be made through announcements on the Pohang City website or by inquiring at the relevant financial institutions.

Mayor Lee Kangdeok stated, “The Hope Companion Special Guarantee Project, which our city is promoting for the first time in the nation through public-private cooperation, is a model case of win-win collaboration between local governments and financial institutions. Next year, we will do our best to give hope to small business owners struggling to secure funds by encouraging even more financial institutions to participate.”