Benefits include low-interest loans and preferential guarantees
On May 19, Jeongeup City in North Jeolla Province announced that it will officially launch the "Special Guarantee for Business Support in Population Decline Areas" program, which offers benefits such as low-interest loans and preferential guarantees.
Eligible companies include those leading the region's key industries, companies that have relocated to the area, businesses with outstanding technology in the agri-food sector, startups established within the past seven years, and companies that contribute to job creation.
The loan limit is set at up to 20% of the company's annual sales from the previous year. The loan period can be up to three years for operating funds and up to ten years for facility funds. Notably, companies that are already receiving other types of support funds can also apply without restriction.
The program will proceed as follows: the city will issue a letter of recommendation to eligible companies upon receipt of their applications. Afterward, the Korea Credit Guarantee Fund will review the applications and provide either a guarantee certificate or support for guarantee fees. NH Nonghyup Bank will then offer preferential loan interest rates to the selected companies.
In addition, the city plans to further reduce the financial burden on businesses by providing an interest subsidy of 2.0% for three years, based on the final calculated loan interest rate. The application period runs until June 9, but may close early if the total fund of 2.5 billion won is exhausted, so interested companies are encouraged to apply promptly. For more details, companies can check the "Notices and Announcements" section on the city hall website or contact the Population Policy Team at the Planning and Budget Office of the city hall.
Mayor Lee Haksoo stated, "We expect this special guarantee program to provide practical relief for local small and medium-sized enterprises facing financial difficulties, and to create a virtuous cycle in which local funds supported in this way are reinvested in the region's development. We will do our utmost to foster a sustainable business environment through focused support for local companies, and ultimately to prevent population outflow and revitalize the local economy."
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