Gwangju Bank Joins Hands with Gwangju Credit Guarantee Foundation to Support Low-Interest Refinancing of Guaranteed Loans for Small Businesses

【Financial News South Jeolla-Gwangju = Reporter Hwang Tae-jong】Gwangju Bank has joined hands with the Gwangju Credit Guarantee Foundation to ease the financing costs and repayment burdens of local small business owners.
 Gwangju Bank said on the 3rd that it recently signed a 'People’s Livelihood Recovery Integrated Refinancing Guarantee Financial Support Agreement' with the Gwangju Credit Guarantee Foundation.
 The 'People’s Livelihood Recovery Integrated Refinancing Guarantee' is a program that allows small business owners using guarantees from the Gwangju Credit Guarantee Foundation to refinance guarantee-backed loans held with multiple financial institutions into a single new loan. It was established to reduce financing costs for local small business owners facing increased financial pressure due to high interest rates and economic uncertainty, while supporting stable debt repayment.
 Jung Il-seon, president of Gwangju Bank, emphasized, "The purpose of this agreement is to provide practical measures to ease the financial burden on local small business owners struggling with high interest rates and economic fluctuations."
 In particular, the program allows guarantee-backed loans spread across multiple financial institutions to be consolidated, making debt management more convenient. It reduces the inconvenience for small business owners who previously had to manage the repayment schedules and terms of individual loans separately. At the same time, it enables them to convert existing loans into relatively lower-interest, long-term loans, thereby easing their repayment burden.
 The loan term can be set at up to seven years, including a one-year grace period, and the applicable interest rate is capped at CD (91-day) + 1.30%. In addition, refinancing support is provided on a full-guarantee basis regardless of the guarantee ratio of the existing debt, allowing small business owners to restructure their debt more stably.
 Gwangju Bank expects the agreement to help local small business owners reorganize their existing debt at lower financing costs and manage their consolidated loans more efficiently. It also believes that cooperation with the Gwangju Credit Guarantee Foundation will further enhance the effectiveness of financial support for local small business owners.
 Jung Il-seon, president of Gwangju Bank, said, "As the leading bank in the region, we will continue to develop financial support measures that can underpin the stable operations and renewed growth of small business owners."

[email protected] Hwang Tae-jong Reporter