MOU Signed with iMBank to Establish 'Hope Together Special Guarantee Fund' on the 9th
Nation's Largest Local Government Fund: 200 Billion KRW Targeted, 150 Billion KRW to Be Achieved in First Half
Mayor Lee Kangdeok: "Top Priority on Implementing Effective Financial Support Policies"
Pohang City has signed a Memorandum of Understanding (MOU) with iMBank to establish the 'Hope Together Special Guarantee Fund,' further expanding the financial support base for local small business owners.
On the 9th, Mayor Lee Kangdeok, iMBank President Hwang Byungwoo, and Gyeongbuk Credit Guarantee Foundation Chairman Kim Jungkwon attended the signing ceremony for the establishment of the Hope Together Special Guarantee Fund, held in the main conference room at City Hall.
Pohang City signed a business agreement with iM Bank to establish the 'Hope Partnership Special Guarantee Fund' (from left: Kim Ilman, Chairman of Pohang City Council; Hwang Byungwoo, President of iM Bank; Lee Gangdeok, Mayor of Pohang; Kim Jungkwon, Chairman of Gyeongbuk Credit Guarantee Foundation). Provided by Pohang City
Of this year's 5 billion KRW contribution from iMBank, 4.5 billion KRW was agreed upon in this MOU. Pohang City will match this amount, and together the two institutions will jointly create a total fund of 10 billion KRW.
The Gyeongbuk Credit Guarantee Foundation will provide guarantees up to 12 times the contributed amount, which is expected to result in approximately 150 billion KRW in funding in just the first half of this year.
With this agreement, the resources for the special guarantee program will be greatly expanded, providing significant support for small business owners facing financial difficulties and aiding the recovery of local commercial districts.
In addition, if the 1.48 billion KRW contributed by seven financial institutions earlier this year and the matching contribution from Pohang City?totaling 2.96 billion KRW?are included, the total secured fund now reaches 12.96 billion KRW.
The city also plans to secure an additional 50 billion KRW for the special guarantee fund in the second half of the year, aiming to reach a total fund size of 200 billion KRW within the year.
This is expected to be the largest financial support program for small business owners among local governments nationwide.
The recipients of the special guarantee fund are small business owners operating in Pohang City. General small business owners can receive loans of up to 50 million KRW, while young entrepreneurs and small business owners with multiple children can receive up to 100 million KRW.
Repayment options include: ▲ lump-sum repayment at maturity after two years ▲ equal principal repayment over three years after a two-year grace period. Pohang City plans to minimize the financial burden on small business owners by offering various benefits, including interest support of up to 3% per annum for two years and preferential interest rates.
In particular, following the support for Guryongpo's fisheries industry and accommodation businesses preparing for the APEC Summit at the beginning of this year, the city will also provide preferential support to small business owners in the Naengcheon Bridge disaster recovery area and the Cheongnim-dong area, which has been struggling due to the steel industry downturn. This is expected to contribute to a broader and more detailed recovery of the local economy.
Mayor Lee Kangdeok stated, "This agreement is a policy that reflects Pohang City's strong commitment to stabilizing small business management. It will serve as an opportunity to further expand the achievements of our city's proactive financial support for livelihoods," adding, "We will continue to prioritize the well-being of our citizens and pursue effective financial support policies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
