Busan Metropolitan City Government to Provide Low-Interest Funding at Rates in the 1% Range to Small Business Owners... KRW 1.2 Trillion Program

[Financial News] Busan Metropolitan City Government will provide low-interest loans to ease the financial burden on local small business owners as part of its “100-Day Emergency Measures for People’s Livelihoods.”
Busan Metropolitan City Government announced on the afternoon of the 15th that it had signed a business agreement to provide low-interest loans at rates in the 1% range and refinancing loans for small business owners facing management difficulties.
The agreement was attended by Busan Mayor Chun Jae-soo; Kim Seong-ju, president of Busan Bank; Lee Jae-heon, vice president of Bank of Hope; Yoon Yong-hwan, vice president of KB Kookmin Bank; Yang Gun-gil, vice president of Shinhan Bank; Lim Dae-jin, regional headquarters executive at Woori Bank; and Jang Mi-im, acting chairperson of the Busan Credit Guarantee Foundation.
Under the agreement, Busan Metropolitan City Government will launch “People’s Livelihoods 112,” a comprehensive financial support project worth KRW 1.2 trillion—the largest-ever amount for a single product.
“People’s Livelihoods 112” consists of five financial support packages aimed at reducing small business owners’ interest burdens, modernizing lodging facilities, and establishing a foundation for the growth of entrepreneurial small businesses.
The “People’s Livelihoods Relief Agreement Guarantee” will provide new working capital at low interest rates and ease the financial burden on existing high-interest borrowers through guarantee conversions and high-interest refinancing loans.
The “Aged Lodging Facility Modernization Fund” will support improvements to aging lodging facilities to promote stay-based tourism in Busan. The “Entrepreneurial Small Business” program will provide interest subsidies to small businesses with growth potential and innovative capabilities.
Busan Metropolitan City Government plans to lower small business owners’ effective interest rates to the 1% range by providing an interest subsidy of 4 percentage points during the first year after loan disbursement and 2 percentage points thereafter.
The detailed support amounts total KRW 1.2 trillion: KRW 500 billion for the People’s Livelihoods Relief Agreement Guarantee, KRW 200 billion for guarantee conversions, KRW 300 billion for high-interest refinancing loans, KRW 100 billion for aged lodging facility modernization, and KRW 100 billion for entrepreneurial small businesses. More than 40,000 small business owners will be eligible for support.
Busan Metropolitan City Government expects the policy financing to generate more than KRW 1.5 trillion in production-inducing effects and approximately 16,000 employment-inducing effects in the Busan region. It also expects the direct flow of funds to small business establishments to invigorate the local economy.
Applications will open on the 17th. Applications for high-interest refinancing loans and aged lodging facility modernization funds will begin on the 28th, after Chuseok.
[email protected] Kwon Byeong-seok Reporter