Park Jin-woo, Chairman of Daegu Credit Guarantee Foundation, set the 2025 management slogan as “Hope for Small Business Owners! Vitality for Neighborhood Commercial Districts!!” and announced the “2025 Comprehensive Support Plan for Small Enterprises and Small Business Owners” on the 7th to help local small enterprises and small business owners overcome management difficulties amid the economic recession crisis.
Daegu Credit Guarantee Foundation will prioritize “Reviving Local Small Business Owners” and supply credit guarantees totaling 2 trillion KRW, the largest amount among 15 regional credit guarantee foundations nationwide excluding Seoul and Gyeonggi.
In particular, starting from mid-January, through the implementation of the 800 billion KRW scale “2025 Daegu Financial Support Package” guarantee products, it plans to actively support the Small Business Growth Special Guarantee (400 billion KRW), Transportation Industry Special Guarantee (70 billion KRW), SME Facility and Competitiveness Enhancement Special Guarantee (30 billion KRW), Emergency Financial Special Guarantee (50 billion KRW), Medical Professional Industry Special Guarantee (50 billion KRW), and High-Interest and Medium-Low Credit Conversion Special Guarantee (200 billion KRW).
Additionally, to support local SMEs and small business owners facing financial difficulties due to high interest rates and consumption contraction, it will implement the “Daegu City Policy Fund (Management Stabilization Fund)” worth 1.2 trillion KRW, providing partial support for bank loan interest for one year (1.0~2.2%).
Last year, Daegu Credit Guarantee Foundation led efforts to revive traditional markets, and this year it plans to implement its own guarantee products in January to revitalize the Dongseong-ro Tourist District and neighborhood commercial districts.
The support targets are businesses operating within the local neighborhood commercial districts and Dongseong-ro Tourist District, aiming to supply liquidity to the tourism industry and neighborhood commercial districts that are experiencing management crises due to prolonged economic recession and rising prices.
Furthermore, by holding on-site guarantee consultation sessions, it will discover and support micro-enterprises in financial blind spots and establish separate on-site consultation desks for self-employed individuals who find it difficult to visit the foundation regularly, enabling one-stop guarantee consultations and document submissions.
Daegu Credit Guarantee Foundation also announced plans to expand the implementation of the “Bridge Guarantee” (conversion of personal guarantees for closed business owners’ guarantees) and the “New Start Fund” for the management normalization and social reintegration of closed business owners and insolvent self-employed individuals compared to last year.
As loan delinquencies and closure rates among self-employed individuals reach record highs, the foundation plans to actively support re-education for small business owners to prevent insolvent closures and cultivate self-reliance to rise again by linking management improvement education programs with guarantee products.
Park Jin-woo, Chairman of Daegu Credit Guarantee Foundation, stated, “Our economy is still facing difficult conditions due to high prices, domestic demand, and consumption recession, and the burden of interest costs and difficulties in financing for small business owners are increasing,” adding, “As the only policy financial institution in Daegu City, we will fully support city policies and make every effort to restore vitality to local small business owners, the roots of the economy.”
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