Gwangju Metropolitan City to Provide an Additional KRW 100 Billion in Funding for Small Businesses

[Financial News, Jeonnam-Gwangju]—Reporter Hwang Tae-jong: Jeonnam-Gwangju Integrated Special City (Gwangju Metropolitan City) will provide an additional KRW 50 billion each to the former Gwangju City and former Jeonnam Province, for a total of KRW 100 billion in funding for small businesses. The measure aims to ease the financial burden on local small businesses struggling amid the prolonged economic downturn.
 Accordingly, this year’s small-business funding will increase from the initial KRW 400 billion—KRW 200 billion each for the former Gwangju City and former Jeonnam Province—to KRW 500 billion. 
 Joo Sun-sun, head of Gwangju Metropolitan City’s Office of Economic Affairs, explained, "We are providing additional policy funding to stabilize the operations of small businesses struggling to raise funds and repay loans amid the prolonged economic downturn."
 According to Gwangju Metropolitan City on the 22nd, the former Gwangju City first signed an agreement with seven institutions, including the Gwangju Credit Guarantee Foundation, Bank of Hope, Shinhan Bank, KB Kookmin Bank, Gwangju Bank, NH NongHyup Bank and KakaoBank, to expand its special guarantee program using KRW 3.8 billion in special contributions from financial institutions. Through the program, an additional KRW 50 billion in funding has been provided since the 21st, with interest support of 3%–4% for one year.
 The former Jeonnam Province will reduce small businesses’ financial costs by providing 3% interest support for two years.
 In addition to expanding funding, Gwangju Metropolitan City also plans to introduce a principal repayment deferment to ease the repayment burden on small businesses with existing loans. Under the principal repayment deferment program, existing loan conditions, including interest rates, remain unchanged, while principal repayment is deferred for one year and the loan maturity is extended by one year. For loans whose principal repayment date has not yet arrived, the grace period will be extended by one year.
 Joo Sun-sun, head of the Office of Economic Affairs, emphasized, "We will also work to ease the repayment burden on existing borrowers, strengthen financial support that small businesses can feel in practice, and actively support the recovery of the people's economy."
 Applications for the principal repayment deferment program will be accepted through December 31. Applications for loans issued by the former Gwangju City can be submitted through the six financial institutions that handled the existing loans: Gwangju Bank, Shinhan Bank, NH NongHyup Bank, Bank of Hope, KB Kookmin Bank and Woori Bank. Applications for loans issued by the former Jeonnam Province can be submitted through the Jeonnam Credit Guarantee Foundation.

[email protected] Hwang Tae-jong Reporter