Gyeonggi Province Introduces 'Advance and Phased Loans' for Agricultural and Rural Development Fund This Year

Starting this year, Gyeonggi Province will provide phased loan support in line with the progress of farmland purchases and facility installations.

On January 12, the Gyeonggi Provincial Government announced that it would revise the implementation guidelines for the Agricultural and Rural Development Fund loan support program to better reflect the realities of financial management in rural areas.

Previously, Gyeonggi Province amended its program guidelines last year to allow farms with insufficient collateral to use the purchased farmland itself as collateral at the time of purchase. However, under the existing system, loans could only be granted after all facilities had been installed, creating a structural limitation that made it difficult to secure the necessary funds in advance during the project implementation process.

With this guideline revision, Gyeonggi Province will now allow loans to be disbursed in phases according to the progress of construction work.

For example, if the cost of installing a greenhouse is 100 million won, a loan of 30 million won will be provided when 30% of the construction is completed, an additional 30 million won when 60% is completed, and the remaining balance will be lent upon completion of the project.

Gyeonggi Provincial Government

Additionally, the province will now allow pre-loans of up to 30% of the total project cost, provided that repayment is deemed possible through collateral or guarantees.

This change reflects feedback from the field, where many farmers and fishers have had to forgo loans due to difficulties in providing their own funds.

Through this improvement, Gyeonggi Province plans to continue refining its operational methods so that the Agricultural and Rural Development Fund functions as a practical policy finance tool that can be directly utilized in the agricultural and fisheries sectors, rather than as a system-centered loan program.

Paek Jongmin, Director of the Department of Agriculture, Fisheries and Life Sciences, stated, "This improvement reflects the reality that many farmers and fishers have had to abandon projects due to difficulties in providing their own funds during facility installation and expansion." He added, "We will continue to actively incorporate feedback from the field to ensure that the fund is managed in a way that farmers and fishers can truly benefit from."

Meanwhile, Gyeonggi Province will run a total of 70 billion won worth of Agricultural and Rural Development Fund loan programs this year. Operating funds are capped at 60 million won per individual and 200 million won per corporation, while facility funds are capped at 300 million won per individual and 500 million won per corporation. The province will begin accepting applications from eligible recipients in February.