Low-Interest Loans Available at Around 2%
Loan Limit Up to 50 Million KRW
Gyeongbuk Province announced on the 9th that the Gyeongbuk branch of Nonghyup Bank and iM Bank have decided to make a special contribution to support low-interest financial products for local small and medium-sized enterprises (SMEs) and small business owners affected by the recent large-scale wildfires.
The Gyeongbuk branch of Nonghyup Bank and iM Bank had already made special contributions of 2.5 billion KRW and 3 billion KRW, respectively, this year to support financing for SMEs and small business owners in the province. In light of the unexpected wildfire damage, they have decided to make additional special contributions of 3.5 billion KRW and 3 billion KRW, respectively, to help affected SMEs and small business owners recover quickly.
The special contributions from the Gyeongbuk branch of Nonghyup Bank and iM Bank will be added to the existing funds and used as guarantee resources for the Gyeongbuk Credit Guarantee Foundation, which provides low-interest policy funds to small business owners in the province. This will enable support of up to 180 billion KRW (15 times the contributed funds for each bank) for small business owners in Gyeongbuk.
With general guaranteed loans (around 5% interest), when combined with the Gyeongbuk Support Finance Interest Subsidy Program, it is possible to access low-interest funds in the 2% range. The loan limit is up to 50 million KRW, with a two-year grace period and repayment over three years, or a two-year grace period with a lump-sum repayment.
In particular, small business owners affected by wildfires can combine the "Disaster Small Business Emergency Management Stabilization Fund" provided by the Small Enterprise and Market Service with the Gyeongbuk Support Finance Interest Subsidy Program, allowing them to borrow up to 300 million KRW (within the amount of damage), with zero interest for two years and a maximum term of up to 10 years.
To apply for funds, applicants can select the branch corresponding to their business address through the "Gyeongbuk Credit Guarantee Foundation AI Call Center (1588-7679)" and receive detailed guidance.
Additionally, Nonghyup Bank is considering launching a new loan product for SMEs in the province that combines Gyeongbuk Province's interest subsidy support program, enabling zero-interest loans.
Hwang Byungwoo, president of iM Bank, said, "We hope that SMEs and small business owners suffering from the massive wildfire damage will be able to recover quickly," and added, "We will do our utmost to provide support in every possible way."
Kim Juwon, head of the Gyeongbuk branch of Nonghyup Bank, said, "We deeply empathize with the difficulties faced by SMEs and small business owners affected by the wildfires," and added, "We will continue to share the pain of local residents and provide practical financial support that the people of the province can truly feel."
Lee Cheolwoo, Governor of Gyeongbuk Province, said, "All of us must work together to help SMEs and small business owners who are devastated by the unprecedented wildfire damage," and added, "I deeply thank Nonghyup Bank and iM Bank for making significant contributions in this time of crisis and taking the lead in supporting affected SMEs and small business owners."
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