Gumi City Launches "New Hope Special Guarantee for Small Business Owners"

Largest-Ever 132 Billion Won Program
Practical Support for Resolving Funding Shortages
First 1:1 Matching Contribution Agreement with Financial Institutions

Gumi City in North Gyeongsang Province is implementing the largest-ever "New Hope Special Guarantee for Small Business Owners" program, totaling 132 billion won, to support local small business owners struggling with management difficulties due to the economic downturn.

This year, the city is providing 72 billion won in the first half and 60 billion won in the second half, an increase of nearly 100 billion won compared to last year's 35 billion won.

The "New Hope Special Guarantee for Small Business Owners" is a flagship financial support program that Gumi City launched for the first time in the province, establishing a rapid and stable guarantee support system to resolve funding shortages.

Notably, for the first time this year, the city signed a 1:1 matching contribution agreement with financial institutions, significantly expanding the stability and scope of financial support.

Special Guarantee Agreement Ceremony (August 6)/Photo by Lee Ihwan

To expand the program, the city closely collaborated with local financial institutions. Six institutions participated-IM Bank (2.49 billion won), Hana Bank (1.2 billion won), NH Nonghyup (1 billion won), KB Kookmin Bank (700 million won), Shinhan Bank (100 million won), and Gumi City Forestry Cooperative (10 million won)-contributing a total of 5.5 billion won.

The city matched this amount, creating a fund of 11 billion won. In addition, the Gyeongbuk Credit Guarantee Foundation increased its guarantee leverage from 10 times last year to 12 times this year, making a total guarantee of 132 billion won possible.

This year alone, more than 4,000 businesses have received management funds through the special guarantee. Since the program began in 2009, approximately 8,900 businesses have received a cumulative total of about 230 billion won in guarantees.

Considering the high demand that leads to early exhaustion of guarantee funds each year, Gumi City is currently discussing with related organizations, including the Gyeongbuk Credit Guarantee Foundation, to adjust the implementation period and expand support in 2026.

Small business owners wishing to apply for the special guarantee can receive a guarantee certificate through the Gyeongbuk Credit Guarantee Foundation and then obtain a loan from one of the partner financial institutions.

General small business owners can borrow up to 50 million won, while young entrepreneurs, Good Price certified businesses, and business owners with multiple children can borrow up to 70 million won.

To reduce interest burdens, the city will subsidize 3% of loan interest for two years, allowing business owners to save up to 4.2 million won in interest payments.

One small business owner said, "Thanks to the guarantee, I was able to secure funds and continue my business," adding, "The interest subsidy also provides a tangible benefit."

Gumi City Mayor Kim Jangho stated, "We are pursuing various support measures for small business owners facing difficulties due to the economic downturn and funding shortages. Through the New Hope Special Guarantee, we will help stabilize local small businesses and revitalize the regional economy."

This content was produced with the assistance of AI translation services.