Jinju City to Provide Small Business Support Funds in the Second Half of the Year

Up to KRW 50 Million, 3% Annual Interest for Two Years
One Year of Credit Guarantee Fees Covered

Jinju City in South Gyeongsang Province announced on June 19 that it will provide KRW 19 billion in small business support funds for the second half of 2025, starting from July 1. This initiative aims to alleviate the financial difficulties of small business owners who are struggling due to reduced consumer spending caused by rising prices and the economic downturn, and to help them establish a stable business foundation.

The loans will be offered in two ways: guaranteed loans through the Gyeongnam Credit Guarantee Foundation, and collateral or credit loans directly from financial institutions. The city will subsidize 3% annual interest for two years on loans of up to KRW 50 million per business. For loans through the Credit Guarantee Foundation, the city will also cover one year’s worth of credit guarantee fees, provided the loan is maintained.

The total loan amount for this year is KRW 45 billion, with KRW 30 billion allocated for guaranteed loans and KRW 15 billion for collateral or credit loans. To support small business owners with insufficient collateral, the city has temporarily increased the guaranteed loan amount by KRW 6 billion for 2025, following the same measure in 2024.

View of Jinju City Hall.

The loan amount for the second half of the year is KRW 19 billion, consisting of KRW 15 billion in guaranteed loans through the Gyeongnam Credit Guarantee Foundation and KRW 4 billion in collateral or credit loans from financial institutions. Of the KRW 26 billion available in the first half of the year, the KRW 15 billion allocated for guaranteed loans was exhausted early. As of June 18, applications for the KRW 11 billion in collateral or credit loans are still open, and any remaining limit will be included in the second half of the year’s support.

Eligible applicants are small business owners operating within the city. For manufacturing, construction, transportation, and mining, businesses with fewer than 10 regular employees qualify. For wholesale, retail, food, and service industries, businesses with fewer than 5 employees are eligible, provided they meet the small business criteria.

Applications for guaranteed loans through the Gyeongnam Credit Guarantee Foundation can be made from July 1 by reserving a consultation appointment on the Foundation’s website, either for an in-person visit to the Foundation or a bank. Applications will close once funds are exhausted. As guaranteed loans are expected to be depleted quickly, small business owners in need of support are encouraged to apply as soon as possible.

Small business owners wishing to apply for collateral or credit loans should first consult with the relevant financial institution regarding loan limits and interest rates, then prepare the required documents and apply in person at the Jinju City Job and Economy Division. Applications will also close once funds are depleted.

A city official stated, "We hope this support will help reduce the financial burden on local small business owners facing management difficulties," adding, "We will continue to strive to provide customized services for small businesses in the future."