Signed Agreement with Kwangju Credit Guarantee Foundation for Guarantee Support
Special Contribution of 350 Million Won Including Special Guarantee
Gwangju Bank recently made a special contribution of a total of 350 million won to support local small business owners struggling due to the economic downturn in four districts of Gwangju (Donggu, Seogu, Namgu, Bukgu). Photo by Gwangju Bank
Kwangju Bank announced on the 21st that it has made a special contribution of 350 million won to support local small business owners in four districts of Gwangju (Dong-gu, Seo-gu, Nam-gu, and Buk-gu), who are struggling due to the recent economic downturn.
Kwangju Bank recently signed a business agreement with the four districts for a 'special contribution for financial support of small business owners' and will provide special guarantee loans totaling 9.61 billion won, which is 27 times the amount contributed. The special guarantee loan for small business owners is a system in which the Credit Guarantee Foundation provides guarantees using contributions from financial institutions and district offices as funds, without requiring other collateral, for small business owners facing financial difficulties or lacking collateral.
On the 18th, Kwangju Bank began supporting small business owners by contributing 50 million won to Buk-gu. Using these funds, the Kwangju Credit Guarantee Foundation will provide special guarantees totaling 850 million won, and the Buk-gu Office will support an interest subsidy of 5.5% to reduce the loan burden for small business owners. The support targets small business owners with business locations in Buk-gu, offering up to 20 million won per business (up to 30 million won for those restarting businesses), with a maximum loan period of five years.
On the 20th, a special contribution of 50 million won was made to support small business owners in Dong-gu.
The Kwangju Credit Guarantee Foundation will provide special guarantees totaling 1.2 billion won, and the Dong-gu Office will support an interest subsidy of 5.5% to ease the loan burden. The support targets small business owners with business locations in Dong-gu, offering up to 20 million won per business.
On this day, a special contribution of 100 million won was made to support small business owners in Nam-gu. The Kwangju Credit Guarantee Foundation will provide special guarantees totaling 3.36 billion won, and the Nam-gu Office will support an interest subsidy of 4.0% to reduce the loan burden. The support targets small business owners with business locations in Nam-gu, offering up to 20 million won per business, with a maximum loan period of five years.
On the 24th, a special contribution of 150 million won is planned for small business owners in Seo-gu. The Kwangju Credit Guarantee Foundation will provide special guarantees totaling 4.2 billion won, and the Seo-gu Office is expected to ease the loan burden by supporting an interest subsidy of up to 5.0% (4.0% for high-credit borrowers, 5.0% for mid- to low-credit borrowers).
Koh Byungil, President of Kwangju Bank, said, "We hope this agreement will support local small business owners and the local economy, which are struggling due to the economic downturn," and added, "We will continue to develop various financial support measures for local residents and do our best to overcome local challenges together."
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