Daejeon City Offers 1% Interest Loans to Food Sanitation Businesses... Up to 200 Million KRW for Facility Improvement

Up to 20 Million KRW in Development Funds Available

Daejeon City has announced that it will provide low-interest loans at an annual rate of 1% for facility improvement funds and development funds to alleviate the economic burden on food hygiene businesses.

The maximum loan amount for facility improvement funds varies depending on the type of business. Establishments applying HACCP can receive up to 200 million KRW, food manufacturing and processing businesses up to 100 million KRW, food hygiene businesses up to 50 million KRW, and health functional food sales businesses up to 20 million KRW.

Additionally, funds for improving signage or restrooms in food hygiene businesses are supported up to 10 million KRW. For development funds, excellent hygiene grade businesses and exemplary businesses can receive up to 20 million KRW.

The loan interest rate is 1% per year. For loans under 50 million KRW, there is a two-year grace period followed by a three-year equal installment repayment plan. For loans of 50 million KRW or more, there is a three-year grace period and repayment is made in equal installments over five years. This loan support will continue until the funds are exhausted.

However, businesses that have not complied with administrative directives, large businesses with annual sales of 3 billion KRW or more, businesses that have received administrative sanctions for acts of public indecency within the past year, or those subject to fund recovery measures within the past three years, are not eligible for support.

Business owners wishing to apply for a loan should visit a local NH Nonghyup Bank branch to consult on loan eligibility, then prepare the loan application, business plan, and other required documents, and submit them to the hygiene department of their respective district office.

Jung Taeyoung, Director of Sports and Health at Daejeon City, said, "We hope that this Food Promotion Fund loan will help ease the economic burden on food hygiene businesses struggling with high prices and high interest rates, and contribute to improving hygiene standards."