Chungnam Credit Guarantee Foundation Provides 12 Billion Won in Guarantees to Restaurants Eliminating Disposable Products

Chungcheongnam-do, NongHyup, and Foodservice Association Sign Agreement
Full Credit Guarantees and Low-Interest Benefits for Eco-Friendly Restaurants

On January 14, the Chungnam Credit Guarantee Foundation signed a four-party business agreement with Chungcheongnam-do Province, NongHyup Bank, and the Chungnam Branch of the Korea Foodservice Industry Association. Under this agreement, the foundation will provide a total of 12 billion won in preferential credit guarantees to foodservice businesses in the province that have eliminated the use of disposable products.

This agreement represents a policy finance model that directly connects Chungcheongnam-do's ongoing "Special Carbon-Neutral Economy Province" strategy to the foodservice industry sector.

Chungcheongnam-do Province and NongHyup Bank will each contribute 500 million won to create the funding pool. When the Chungnam Branch of the Korea Foodservice Industry Association identifies participating businesses, the Chungnam Credit Guarantee Foundation will provide credit guarantees based on these recommendations.

The support targets foodservice businesses located in Chungcheongnam-do that have either halted or significantly reduced their use of disposable products.

If these businesses take out operating loans from NongHyup Bank, a financial institution participating in the agreement, the Chungnam Credit Guarantee Foundation will provide a full guarantee (100%) and preferential guarantee fee rates of up to 0.9%.

With the addition of low-interest loans, the more actively a restaurant implements eco-friendly management practices, the more noticeable the reduction in its financial burden will be.

The Chungnam Credit Guarantee Foundation sees this agreement as meaningful in that it transforms the environmental policy of reducing disposable product use into a management incentive at the business level. Rather than a simple regulation, this creates a financial structure in which businesses that take action gain a competitive advantage in the market.

Jo Sohaeng, Chairman of the Chungnam Credit Guarantee Foundation, stated, "This is a highly symbolic agreement that supports the management stability of foodservice businesses practicing carbon neutrality through financial measures," and added, "The Chungnam Credit Guarantee Foundation will continue to lead the way in financial transformation that sustains both the economy and the environment of Chungcheongnam-do."