Jeonbuk Province to Provide 1.45 Trillion Won in Guarantee Support for Small Business Owners

Building a Financial Safety Net to Ease Management Burdens

Jeonbuk Provincial Government Office building. Provided by Jeonbuk Province

Jeonbuk Special Self-Governing Province will implement a total guarantee support program worth 1.45 trillion won this year to help local small business owners who are struggling with funding shortages due to the economic downturn and high interest rates.

According to Jeonbuk Province on January 7, this support focuses on helping small business owners overcome short-term liquidity crises and alleviating the burden of high interest rates. In particular, a new "Hopeful Support Account for Small Business Owners" has been introduced in the form of a revolving credit line, allowing flexible use of funds when needed.

The "Hopeful Support Account," operated with a total budget of 50 billion won, is designed for small business owners who are currently using card loans or cash advance services, allowing them to withdraw funds as needed up to a limit of 20 million won per business. This is expected to help prevent delinquencies and credit downgrades among small business owners in urgent need of cash.

The core guarantee program, "Small Business Recovery Support Fund," has also been significantly expanded from 375 billion won last year to 417 billion won this year. Businesses facing management difficulties and those in the growth stage can receive guarantees of up to 200 million won per business, along with interest subsidy benefits of 2% to 4%.

Tailored policies for financially vulnerable groups will also continue. A total of 15 billion won has been allocated for special guarantees for self-employed individuals with low credit and low income, and 7.5 billion won will be invested in financial support for small business owners who are pregnant, experiencing infertility, or raising children. In addition, interest subsidies will be linked to a total of 17 products, including refinancing loans and bridge guarantees, to further reduce the effective interest rate burden.

Kim Intae, Director of Corporate Attraction Support at Jeonbuk Province, stated, "We have focused on establishing a financial support system that small business owners can use immediately in urgent situations," adding, "Through the 1.45 trillion won guarantee support, we will build a strong financial safety net to help small business owners make a new leap forward."