Applications Accepted Until July 16
Annual Loan Interest Rate Set at 1.0%
Gwangyang City in Jeollanam-do announced that, in collaboration with Jeollanam-do, it will provide long-term low-interest loans through the "Jeollanam-do Tourism Promotion Fund for the Second Half of 2025" to strengthen the competitiveness of the tourism industry.
The eligible recipients for the loans include businesses in the tourism accommodation industry, tourism pension industry, camping business, Hanok experience business, tourism cruise business, and travel agencies. The funds will support the construction, expansion, renovation, and operation of facilities for private tourism businesses.
Gwangyang City, in collaboration with Jeollanam-do, will provide long-term low-interest loans through the "Jeollanam-do Tourism Promotion Fund for the Second Half of 2025" to strengthen the competitiveness of the tourism industry. Photo by Gwangyang City
The total amount available for loans from the Tourism Promotion Fund in the second half of 2025 is 5 billion KRW, with an annual interest rate of 1.0%. The loan limit ranges from 200 million KRW up to a maximum of 3 billion KRW, depending on the business type and purpose of the funds.
The repayment terms vary according to the purpose of the funds: for facility renovation, there is a two-year grace period followed by three years of installment repayment; for expansion, a three-year grace period followed by four years of installment repayment; for new construction, a four-year grace period followed by seven years of installment repayment. For operating funds, a two-year grace period followed by three years of installment repayment applies.
The application period is open until July 16. Applicants must complete loan consultations with the designated banks, obtain approval for their business plan from the city, complete administrative procedures such as building permits, and then submit their application to the Tourism Division of Gwangyang City either by mail or in person.
The designated banks handling the loans are the main and branch offices of six financial institutions: Kwangju Bank, Nonghyup Bank, Industrial Bank of Korea, Hana Bank, Citibank Korea, and Woori Bank. Applications for facility funds must be submitted in person, while applications for operating funds can be submitted either in person or by registered mail.
The final selection of loan recipients and the amount of support will be determined by on-site verification and a review by the Jeollanam-do Fund Deliberation Committee by the end of August. The loan execution period will be from September 1, 2025, to February 28, 2026.
Kim Miran, head of the Tourism Division, said, "We hope that this Tourism Promotion Fund loan will contribute to expanding insufficient tourism infrastructure and improving tourism readiness, thereby not only strengthening the region's tourism competitiveness but also reducing the burden on tourism business operators and invigorating the local economy."
Meanwhile, the Jeollanam-do Tourism Promotion Fund has been jointly operated by Jeollanam-do and 22 cities and counties since 2013 with the aim of enhancing and promoting tourism competitiveness.
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