Busan Metropolitan City Government to Provide Small Businesses with Low-Interest Funds in the 1% Range... Totaling 1.2 Trillion Won

[Financial News] Busan Metropolitan City Government will provide low-interest loans to ease the financial burden on local small businesses.
Busan Metropolitan City Government announced that it will sign an agreement on low-interest loans in the 1% range and high-interest loan refinancing for small businesses facing management difficulties at the city hall video conference room on the afternoon of the 15th.
The signing ceremony will be attended by Mayor Chun Jae-soo; Kim Seong-joo, president of Busan Bank; Lee Jae-heon, deputy president of Bank of Hope; Yoon Yong-hwan, deputy president of KB Kookmin Bank; Yang Gun-gil, deputy president of Shinhan Bank; Lim Dae-jin, head of the Busan branch of Woori Bank; and Jang Mi-im, acting head of the Busan Credit Guarantee Foundation (BCGF), along with other officials from major financial institutions.
Through the agreement, Busan Metropolitan City Government will launch “Minsaeng 112,” a comprehensive financial support project worth 1.2 trillion won—the largest ever based on a single product.
Minsaeng 112 consists of five financial support packages designed to ease small businesses’ interest burdens, modernize lodging facilities, and establish a foundation for the growth of entrepreneurial small businesses.
The “Minsaeng Safety 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 loan refinancing.
The “Aged Lodging Facility Modernization Fund” will provide financing for facility improvements at aging lodging establishments 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.
To substantially reduce small businesses’ financial burden, interest subsidies of 4.0 percentage points will be provided during the first year and 2.0 percentage points thereafter, allowing them to access funds at an effective interest rate in the 1% range.
The detailed support amounts total 1.2 trillion won: 500 billion won for the Minsaeng Safety Agreement Guarantee, 200 billion won for guarantee conversions, 300 billion won for high-interest loan refinancing, 100 billion won for aged lodging facility modernization, and 100 billion won for entrepreneurial small businesses. More than 40,000 small businesses will be eligible for support.
Busan Metropolitan City Government expects the policy financing to generate more than 1.5 trillion won in production-inducing effects and employment-generating effects for approximately 16,000 people in the Busan area. It also expects the funds to be supplied directly to neighborhood commercial districts and small business establishments, invigorating the local economy.
Applications will open on the 17th. Applications for high-interest loan refinancing and aged lodging facility modernization funds will begin on the 28th, after Chuseok.
Mayor Chun Jae-soo said, "I hope this Minsaeng 112 financial support program will serve as a strong stepping stone toward the normalization of small businesses’ operations and a fresh leap forward."
[email protected] Kwon Byung-seok Reporter