50 Million Won Support per Business
for Small Businesses with Annual Sales Under 100 Million Won
Hongseong County in Chungnam Province announced that it will actively support the normalization of small business operations that are struggling due to the ongoing economic downturn, the "three highs" phenomenon, and sluggish domestic demand.
The county plans to secure a budget for the small business normalization fund by submitting a supplementary budget bill to the county council, which will convene on the 13th, and to provide financial support to struggling small businesses by accepting applications from this month through March.
The plan is to provide 500,000 won per business to small businesses with annual sales of less than 100 million won, with applications accepted at the county office and the local town and township community centers where the business is located.
In addition, to ease the financial burden of loans for small businesses in light of their financial situations and price stabilization, the county contributed 800 million won to the Chungnam Credit Guarantee Foundation in January this year, an increase of 300 million won from last year's 500 million won, to support special credit guarantees for small businesses.
The support scale allows for guarantees up to 12 times the contributed amount, resulting in 9.6 billion won in special guarantees. The county also provides an annual loan interest support of 1.5% and preferential guarantee fees of up to 0.9% per year, which is expected to reduce the financial burden on small businesses. The maximum guarantee limit is 30 million won.
The county has also changed the mobile discount policy for its local currency, Hongseong Love Gift Certificate, from a pre-discount method to a post-cashback method. The city expects this to stimulate consumption, increase the income of small businesses, and revitalize the local economy, while also having a significant effect in preventing illegal distribution.
Oh Seonghwan, Director of the Economic and Agricultural Bureau, said, "We will continue to develop and implement various economic revitalization policies so that we can help small business owners who are feeling anxious due to the ongoing economic downturn."
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