Gwangju Expands Special Guarantee Program for Small Business Owners to 200 Billion Won, Largest Ever

Expanded by 30 Billion Won from Last Year
Up to 50 Million Won Support Per Person

Gwangju Metropolitan City is expanding its special guarantee program for small business owners facing financial difficulties to 200 billion won this year. This is the largest amount ever, up 30 billion won from last year.

According to the city of Gwangju on January 23, the city signed the "2026 Special Guarantee Support Agreement for Small Business Owners" the previous day in the City Hall business room with seven financial institutions: Gwangju Credit Guarantee Foundation, Gwangju Bank, Hana Bank, KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, KakaoBank, and Woori Bank.

Gwangju Metropolitan City Hall.

The special guarantee program for small business owners is a project in which Gwangju City and financial institutions create a fund to provide low-interest loans to small business owners who lack sufficient collateral. This year, Gwangju City will allocate a total budget of 10.9 billion won, including 4.1 billion won in contributions and 6.8 billion won in interest support. The total amount contributed by Gwangju City and the participating banks to the Gwangju Credit Guarantee Foundation is 14.4 billion won.

Based on this, a total guarantee of 200 billion won will be supplied: 150 billion won in the first half of the year and 50 billion won in the second half. Of the first-half guarantee, 50 billion won will be allocated to small business owners located in 23 neighborhoods adjacent to Urban Subway Line 2.

Gwangju City will provide interest support equivalent to 3-4% of the loan interest rate for one year from the loan execution date. Medium- and low-credit borrowers (with credit scores between 839 and 350) will receive an additional 1% in support, allowing for up to 4% interest support.

The program is open to small businesses and micro-enterprises in the Gwangju area, excluding those in entertainment, gambling, or speculative industries. After review and guarantee by the Gwangju Credit Guarantee Foundation, applicants can receive loans without collateral. Those with a credit score of 350 or higher can apply for up to 50 million won per person through the participating financial institutions.

Repayment options include a lump-sum payment or installment plans of 2, 4, or 6 years after a one-year grace period. The loan interest rate is variable, calculated as the short-term COFIX or CD rate plus 1.5-1.6%. The guarantee fee is 0.7% per year.

Starting this year, the Gwangju Credit Guarantee Foundation will operate the entire process of application, review, and guarantee certificate issuance non-face-to-face. An automated review system will also be introduced to simplify the guarantee process.

This special guarantee program will be implemented from January 26 until the guarantee limit is exhausted. Applicants can check details on the Gwangju Credit Guarantee Foundation website and apply without visiting in person through the "Bojeung Dream" app.