Gumi City Greatly Expands Special Guarantee for Small Business Owners... 36.2 Billion Won Support

Matching Contribution Agreement with Hana, Kookmin, Nonghyup, and Forestry Cooperative

Gumi City in Gyeongbuk Province is significantly expanding special guarantee support for small business owners in collaboration with local financial institutions and the Gyeongbuk Credit Guarantee Foundation.

On the 18th, Kim Jang-ho, Mayor of Gumi City, signed a contribution agreement for the 'Small Business New Hope Special Guarantee' and held a meeting with related parties.

On the 18th, Gumi City announced that it signed a contribution agreement for the ‘New Hope Special Guarantee for Small Business Owners’ and will provide guarantee support totaling 36.24 billion KRW this year.

This special guarantee program was first introduced in the province in 2009 to support small business owners struggling with high interest rates. Until last year, it provided guarantees worth 106 billion KRW to over 4,800 businesses.

This year, to respond to the prolonged economic downturn, the city increased its contribution funds and greatly expanded the support scale through 1:1 matching contributions with financial institutions.

Accordingly, Gumi City contributed 1.51 billion KRW, with additional contributions of 800 million KRW from Hana Bank, 500 million KRW from NH Nonghyup Bank, 200 million KRW from KB Kookmin Bank, and 10 million KRW from the Gumi City Forestry Cooperative, raising a total fund of 3.02 billion KRW.

Using these funds, up to 36.24 billion KRW in financing will be provided to small business owners. Small business owners wishing to receive the special guarantee can obtain a guarantee certificate from the Gyeongbuk Credit Guarantee Foundation and then apply for loans at any of the four contracted financial institutions.

General small business owners can borrow up to 50 million KRW, while young entrepreneurs, good-price businesses, and multi-child business owners can borrow up to 70 million KRW.

Additionally, 3% of the loan interest will be supported for two years to reduce the burden on small business owners. Consultation applications are available through the Gyeongbuk Credit Guarantee Foundation website or the AI call center.

Kim Jang-ho, Mayor of Gumi City, stated, “Through this agreement, we hope that small business owners, who are the core of the local economy, can continue their management stably,” and emphasized, “We will continue to expand matching contributions in cooperation with financial institutions and prepare various support measures.”