Hwacheon County Extends 4.5% Special Interest Subsidy for Small Business Loans..."Easing Management Burden"

Loan Recommendations for Business Stabilization Funds from Local Financial Institutions
4.5% of Loan Interest Subsidized
Interest Subsidy Ceiling Maintained at 4.5%, Up from 3% Since 2025

Hwacheon County in Gangwon Province will maintain the upper limit of interest subsidies for small and medium-sized enterprises (SMEs) and small business owners at 4.5%, the same as last year.

Aerial view of Hwacheon-eup. Provided by Hwacheon County

On January 7, the county announced the "Hwacheon County SME and Small Business Development Fund Loan Recommendation and Interest Subsidy Support Program."

This program, based on the "Ordinance on Promoting the Local Economy of Hwacheon County," involves Hwacheon County recommending business operation loans for SMEs and small business owners to local financial institutions and covering part of the loan interest rates.

Until 2024, the county had subsidized 3% of the loan interest rates, but due to the prolonged economic downturn, a special temporary measure was implemented last year, raising the interest subsidy ceiling significantly to 4.5%.

The county has decided to extend this special measure this year, maintaining the upper limit of the interest subsidy for loans at 4.5%.

As a result, small business owners who receive business stabilization loan recommendations from local financial institutions through the county are expected to see a significant reduction in their monthly interest repayment burden.

Meanwhile, eligible applicants for this program are SMEs registered as businesses in Hwacheon County, as defined by relevant laws and regulations, with business owners who have their resident registration in Hwacheon County.

Eight local financial institutions are participating in the loan program: Nonghyup Hwacheon County Branch, Gangwon Danuri Credit Union, Hwacheon Saemaeul Geumgo, Dachang Saemaeul Geumgo, Hwacheon Nonghyup, Gandong Nonghyup, Chuncheon Cheorwon Livestock Cooperative, and the County Forestry Cooperative.

Applications must be submitted in person to the Regional Economy Division at the county office, along with documents such as the loan recommendation application form.

Hwacheon County will review the eligibility of applicants, select the target businesses, and recommend them for loans to the financial institutions.

Choi Moonsoon, Governor of Hwacheon County, stated, "We will do our utmost to support small business owners and SMEs so that they can maintain stable business operations."