Chilgok County Mobilizes Full Support for Companies and Small Business Owners with 106 Billion Won Injection

Chilgok County in North Gyeongsang Province has launched a financial support package worth 106 billion won-the largest among county-level local governments in North Gyeongsang Province-to help small and medium-sized enterprises and small business owners overcome funding shortages.

On the 21st, Kim Jaewook, the mayor of Chilgok County, along with officials, is shouting "Fighting" to support small and medium-sized enterprises and small business owners. Photo by Kim Ewhan

With demand for funds rising due to high interest rates and the upcoming holiday season, the county is providing operating funds to companies and guarantee funds to small business owners simultaneously.

This year, Chilgok County plans to provide 100 billion won in operating funds for small and medium-sized enterprises. When companies take out loans through 13 partner banks, the county will cover 3% of the interest.

Funding will be supplied according to demand at different times of the year: 40 billion won ahead of the Lunar New Year, 10 billion won for occasional needs in the first half, 10 billion won for occasional needs in the second half, and 40 billion won ahead of Chuseok. This support aims to help businesses secure short-term operating expenses such as payments for raw materials and labor costs.

Separate stabilization funds are also being operated for small business owners.

Chilgok County has contributed 500 million won to the Chilgok branch of the Gyeongbuk Credit Guarantee Foundation, establishing a guarantee fund totaling 6 billion won.

The structure guarantees up to 12 times the contributed amount, and Chilgok County ranks among the top county-level local governments in North Gyeongsang Province for both single and cumulative contributions.

The guarantee limit is up to 30 million won per business, and up to 50 million won for young entrepreneurs and businesses with “good price” certifications. The county will support 3% of the loan interest for two years.

This measure has been designed to support both companies and small business owners simultaneously.

The operating funds reduce the burden of operating expenses for companies, while the guarantee funds improve financial access for small business owners. The county has focused on managing the flow of funds in both areas in a stable manner.

The stabilization funds for business owners can be applied for at the Chilgok branch of the Gyeongbuk Credit Guarantee Foundation starting in February, until the funds are exhausted. All small business owners in the county, except for certain restricted industries, are eligible. Information regarding operating funds for small and medium-sized enterprises can be found in the business support section of the Chilgok County website.

A Chilgok County official stated, "The purpose is to minimize the financial burden on companies and small business owners," adding, "We will continuously monitor the operation of the support system and make improvements as needed."

Meanwhile, in addition to financial support, Chilgok County also plans to implement measures such as settlement meetings and improvements to dormitory environments for foreign workers, to address difficulties faced by businesses on the ground.