200 billion increase from last year, the largest ever… Participating banks increased from 5 to 7, contribution funds expanded from 7.2 billion to 12.2 billion,
Gwangju Metropolitan City and 8 major banks sign a special guarantee agreement / Photo provided by Gwangju Metropolitan City, “Gwangju Metropolitan City alleviates the burdens of local small business owners through ‘good finance’. As part of the economic recovery policy ‘Gwangju Economy Together Step by Step’ (good consumption, good finance, good jobs), it announced on the 5th that the small business special guarantee program will be supported at the largest scale ever.”,
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, ‘The small business special guarantee supports low-interest loans and interest for small businesses, promoting stable management and contributing to revitalizing the local economy.’,
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, ‘This year, Gwangju City will undertake a small business special guarantee project on a record scale of 170 billion won to alleviate the financial difficulties of small business owners and self-employed individuals in managerial crisis. This is an increase of 20 billion won from last year’s 150 billion won, and a 70% increase from 100 billion won in 2022.’,
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, ‘This expansion was possible thanks to Gwangju City’s active efforts prioritizing livelihood economic recovery and the cooperation of local banks. The number of participating banks in the special guarantee has increased from 5 in 2022 to 7 this year, and the contribution funds have been greatly expanded from 7.2 billion won to 12.2 billion won.’,
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, “To expand the special guarantee, on the 23rd of last month, Gwangju City signed the ‘2025 Small Business Special Guarantee Support Agreement’ with eight financial institutions during the ‘2025 Gwangju Economy Together Step by Step’ event, which was attended by 76 economic entities and organizations from the Gwangju region.”,
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, ‘Participating financial institutions in the agreement include Gwangju Credit Guarantee Foundation, Gwangju Bank, KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, Hana Bank, Woori Bank, and KakaoBank.’,
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, ‘Under the agreement, a total of 12.2 billion won will be contributed to the Gwangju Credit Guarantee Foundation, with 4.1 billion won from Gwangju City and 8.1 billion won from the banking sector. Through this, the Gwangju Credit Guarantee Foundation will provide guarantees of 1 trillion won in the first half of the year and 700 billion won in the second half, totaling 1.7 trillion won.’,
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, ‘Gwangju City has moved the project implementation period up by one month compared to last year for quick support to small business owners and self-employed, with the special guarantee being implemented from the 24th of last month.’,
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, ‘Additionally, 5 billion won will be primarily provided to tourism businesses to ensure management stability in the tourism industry related to the Jeju Air passenger plane disaster. Reflecting the high inflation situation, the maximum loan limit is within 50 million won per business. This special guarantee operation period lasts until the limit is exhausted.’,
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, ‘Eligible for the small business special guarantee loan support are all industries of small enterprises, small business owners, and self-employed located in Gwangju, excluding certain industries such as entertainment, gambling, and speculative industries. Loan conditions allow borrowing without collateral through the evaluation and guarantee of the Gwangju Credit Guarantee Foundation.’,
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, ‘Small business owners with a credit score of 350 or higher can apply for a loan at the cooperating banks within a limit of up to 50 million won, with options of one-time repayment, a 1-year grace period with 2-year installment repayment, a 1-year grace period with 4-year installment repayment, or a 1-year grace period with 6-year installment repayment. The repayment methods have been expanded from 2 to 4 types to broaden choices.’,
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, ‘Loan interest rates are variable rates, either short-term COFIX+1.5~1.6% or CD rate (91 days)+1.5~1.6%, with a guarantee fee of 0.7% per annum.’,
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, “Those interested in special guarantees can make a counseling appointment through the Gwangju Credit Guarantee Foundation’s website and visit the corresponding branch on the appointment day. Non-face-to-face guarantee applications are also possible through the Credit Guarantee Foundation Central Association’s app ‘Guarantee Dream.’ For more details, refer to the Gwangju Credit Guarantee Foundation’s website.”, ‘article_split’,
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