Gyeonggi Shinbo Provides Additional 60 Billion Won in 'Jihae-pae Special Management Funds' for Heavy Snow Damage

The Gyeonggi Credit Guarantee Foundation has expanded the support scale of the ‘Disaster Damage Special Management Fund’ from the previous 20 billion KRW to 80 billion KRW to help local companies affected by heavy snowfall secure stable funding.

Gyeonggi Credit Guarantee Foundation announced on the 10th that due to a surge in funding applications from companies affected by the recent heavy snowfall, the existing limit of 20 billion KRW for the Disaster Damage Special Management Fund was exhausted early, prompting an emergency allocation of an additional 60 billion KRW.

The Disaster Damage Special Management Fund supports companies that have received a ‘Disaster Small and Medium Enterprise Confirmation Certificate’ or a ‘Damage Confirmation Letter’ from the relevant local government. The loan limit is up to 500 million KRW for small and medium enterprises and up to 50 million KRW for small business owners. The loan terms include a 1-year grace period and a 3-year equal installment repayment plan. In particular, with interest rate support from Gyeonggi Province, the loan interest rate is reduced by 1.5 percentage points compared to bank rates (2.0 percentage points for small business owners), significantly reducing the burden on companies.

Front Perspective View of Gyeonggi Credit Guarantee Foundation

Additionally, Gyeonggi Credit Guarantee Foundation is strengthening guarantee support for disaster-affected companies through ‘Special Guarantee for Disaster Small and Medium Enterprises.’ Eligible companies are those that have received a ‘Disaster Small and Medium Enterprise Confirmation Certificate’ or a ‘Damage Confirmation Letter’ from local governments or institutions delegated by local governments. Working capital support is provided up to 300 million KRW per company or the lesser amount of the disaster-related damage. Facility funds are supported within the scope of the required funds for facilities related to the disaster damage. The guarantee ratio is 100%, and the guarantee fee rate is 0.5% per annum (0.1% per annum for special disasters).

Since the 4th, Gyeonggi Credit Guarantee Foundation has dispatched staff to the Integrated Snow Damage Support Centers established in Yongin, Icheon, and Anseong, areas heavily affected by the heavy snowfall, to provide loan and special guarantee consultations to affected companies.

Si Seok-jung, Chairman of Gyeonggi Credit Guarantee Foundation, stated, "We will closely monitor the situation and respond proactively to ensure that small and medium enterprises and small business owners in the province, who are already struggling due to high interest rates, economic downturn, and increasing domestic and international uncertainties, do not face additional burdens from the heavy snowfall damage." He added, "We will do our best to cooperate with Gyeonggi Province and city and county governments to ensure that necessary funds are provided in a timely manner."