Nation's First Public-Private Partnership Special Guarantee Model Leads the Way in Addressing Financial Blind Spots
Rapid Stabilization of the Local Economy in Line with the New Administration's 'Livelihood Economy Recovery Policy'
On July 30, the Pohang city government announced that the total funding for the 'Hope Companion Special Guarantee' project has reached 210 billion won.
On the 30th, Pohang City, affiliated financial institutions, the Gyeongbuk Credit Guarantee Foundation, and leaders of small business-related organizations attended a commemorative event at City Hall to celebrate the achievement of the special guarantee fund target. Photo by Pohang City
This demonstrates that the public-private partnership special guarantee model, which has been promoted since last year, is now producing tangible results and that a sustainable financial support system for local small business owners has been firmly established.
On this day, city officials, representatives from participating financial institutions, the Gyeongbuk Credit Guarantee Foundation, and heads of organizations related to small business owners held a commemorative event in the city hall’s main conference room to celebrate reaching the special guarantee funding target. They reaffirmed their commitment to continue close cooperation to support local small business owners.
As of July this year, 4,600 people have benefited from the special guarantee, with a total of 138 billion won in funds provided. This support is making a tangible difference for small business owners who are experiencing financial difficulties.
The loan limit for the special guarantee is up to 50 million won for general applicants, and up to 100 million won for priority recipients such as young entrepreneurs and families with multiple children. In addition, preferential interest rates and up to 3% annual interest support for two years are provided, significantly reducing the financial burden on small business owners.
In particular, this year, customized preferential support was provided to local small business owners facing business difficulties due to the Naengcheon Bridge disaster recovery project and sluggish fishing industry. Furthermore, for small business owners in the food and retail sectors in Haedo-dong and Songdo-dong, who were affected by the cancellation of the Light Festival, support of up to 40 million won is being promoted regardless of personal credit score, with the usual credit limit review omitted. This will be implemented starting in August.
However, this support applies only to business owners who registered their business location in the relevant areas before June 21, 2025.
Pohang city is strengthening cooperation, including matched funding, with a total of 11 financial institutions, including KB Kookmin Bank and Shinhan Bank, and is promoting the largest-scale special guarantee project in the country in terms of guarantee amount and the number of participating financial institutions.
Mayor Lee Kangdeok stated, "Reaching 210 billion won is a valuable achievement made possible through public-private cooperation, and it is significant in that it has made a practical contribution to resolving the financial difficulties faced by local small business owners and establishing a sustainable business foundation. As the steel industry downturn and the secondary battery chasm phenomenon are causing many challenges, we will further strengthen policy support so that small business owners can receive even more assistance."
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