Gwangju Expands Special Guarantee for Small Businesses to 170 Billion Won

A Record Increase of 20 Billion KRW from Last Year
Up to 50 Million KRW for Small Business Owners and the Self-Employed

On the 23rd of last month, when the '2025 Gwangju Economy Together Steadily' event was held, Gwangju Mayor Kang Kijeong took a commemorative photo after signing the 'Special Guarantee Support Agreement for Small Business Owners' with eight related organizations including Gwangju Credit Guarantee Foundation, Gwangju Bank, KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, Hana Bank, Woori Bank, and Kakao Bank at the Gwangju Chamber of Commerce and Industry's main conference room. Provided by Gwangju City

Gwangju City is easing the burdens of local small business owners through its 'Good Finance' initiative. As part of the three-pronged economic recovery policy, 'Gwangju Economy Together Step by Step' (Good Consumption, Good Finance, Good Jobs), the city is providing the largest-ever support for the special guarantee program for small businesses.

The special guarantee for small businesses is a program that offers loans and interest support at low interest rates, aiming to ensure stable business operations through smooth funding and to revitalize the local economy.

According to Gwangju City on the 5th, this year it will implement the special guarantee program for small businesses at a record scale of 170 billion KRW to alleviate the financial difficulties of small business owners and self-employed individuals facing management crises. This is an increase of 20 billion KRW from last year's 150 billion KRW, and represents a 70% increase from 100 billion KRW in 2022, having been expanded twice.

To expand the special guarantee, on the 23rd of last month, the city signed the '2025 Special Guarantee Support Agreement for Small Businesses' with eight financial institutions during the '2025 Gwangju Economy Together Step by Step' event, which brought together 76 local economic organizations and groups. Participating financial institutions include Gwangju Credit Guarantee Foundation, Gwangju Bank, KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, Hana Bank, Woori Bank, and KakaoBank.

Under the agreement, Gwangju City will contribute 4.1 billion KRW and the banking sector 8.1 billion KRW, totaling 12.2 billion KRW to the Gwangju Credit Guarantee Foundation. Through this, the foundation will provide 100 billion KRW in guarantees in the first half and 70 billion KRW in the second half of this year, totaling 170 billion KRW for small business owners.

The city advanced the start of the program by one month compared to last year, launching it in January, and began implementing the special guarantee on the 24th of last month. Additionally, to support the management stability of the tourism industry affected by the Jeju Air passenger plane accident, 5 billion KRW will be supplied to tourism businesses as a priority.

Reflecting the high inflation, the maximum loan limit is set at up to 50 million KRW per business. The special guarantee will be available until the funds are exhausted.

Applicants wishing to use the special guarantee can make a counseling reservation through the Gwangju Credit Guarantee Foundation website and visit the relevant branch on the reserved date. Non-face-to-face guarantee applications are also possible through the 'Bojeung Dream' app by the Korea Credit Guarantee Foundation.

To ease the financial burden on small businesses, the city will invest over 5.8 billion KRW to support 3-4% of the loan interest rate for one year from the loan execution date. For those with medium to low credit (credit score 839 to 350), an additional 1% will be supported, totaling 4%.

Mayor Kang Gijung stated, "I hope this special guarantee will provide some relief to the frozen livelihoods of our citizens," and added, "Gwangju, always by the side of small businesses and small business owners, will do its utmost to create a warmer economy for the people."