Seoul Credit Guarantee Foundation "Support for Remaining Balance Even with Guarantees in Other Regions... Regulation Abolition Plan No. 54 in Full Swing"

[Financial News] Even companies that have received credit guarantees in regions outside Seoul will have the opportunity to receive guarantees again in Seoul if there is a remaining balance. To provide practical help to small business owners and the disadvantaged, the Seoul Metropolitan Government, which is working to abolish unnecessary regulations, has launched the 'Easing of Guarantee Restrictions for Companies Guaranteed by Other Regions,' the 54th initiative it has identified.
Seoul City announced on the 29th that it has completely abolished the new guarantee restrictions for companies using guarantees from the Seoul Credit Guarantee Foundation (hereinafter referred to as the Foundation) and other regional credit guarantee foundations. Until now, the Foundation has restricted new guarantees for companies with remaining guarantee balances at other regional credit guarantee foundations, defining them as 'guarantee-restricted companies' to allow more companies to receive support with limited guarantee resources.
Although this was a systematic measure to prevent opportunity bias and increase resource distribution efficiency, situations arose where companies relocating their business to Seoul or operating in Seoul were excluded from support. There have been consistent criticisms and demands for correction due to the reduced effectiveness of support.
The city and the Foundation have prioritized and actively pursued the easing of guarantee regulations for companies using other regional foundations, reflecting the voices from the field of companies that could not receive guarantee support due to these institutional constraints.
In February, to support small business owners struggling due to the economic downturn, Seoul City held a regulatory abolition briefing attended by 23 affiliated investment and contribution institutions and selected this improvement plan as 'Regulation Abolition Plan No. 54.' Subsequently, they completed the system improvement by sequentially revising the 'Credit Guarantee Regulations' and 'Guarantee Review Operation Guidelines.'
With the abolition of this guarantee regulation, companies with remaining guarantee balances at other regional credit guarantee foundations can now receive support by deducting the corresponding balance from the total support limit, allowing companies that have relocated their business to Seoul or are operating in both other regions and Seoul to apply for new guarantees through the Foundation.
For example, a company with a guarantee limit of 50 million won at the Foundation and holding a guarantee balance of 10 million won at Gyeonggi Shinbo can now receive new guarantee support up to the remaining limit of 40 million won. Previously, support was not possible, but after the improvement, additional support is possible up to the remaining limit. According to the city, since the implementation of the system, the Foundation has supported new guarantees totaling 186 million won for seven companies.
Choi Hang-do, Chairman of the Seoul Credit Guarantee Foundation, said, "This regulation abolition is to eliminate blind spots in guarantees and increase small business owners' access to funds," adding, "We will continue to work with the Seoul Metropolitan Government to identify and improve unnecessary regulations to ensure small business owners can continue their businesses stably."
chlee1@fnnews.com Lee Chang-hoon Reporter