Special guarantee contribution raised from 1.1 billion to 3.1 billion won
Interest subsidy budget increased from 50 million to 200 million won
Gwangju announced Tuesday it will expand special loan guarantee and interest subsidy support for local small and medium-sized enterprises struggling to secure financing amid high interest rates and a prolonged economic downturn.
The city will revise its special guarantee agreement with the Gyeonggi Credit Guarantee Foundation, raising its contribution from 1.1 billion won ($818,000) to 3.1 billion won — an increase of 2 billion won — starting this month. The existing 1.1 billion won will operate under a four-times revolving limit, while the additional 2 billion won will be managed under a ten-times non-revolving limit, creating a base for up to 24.4 billion won in special guarantee support.
The special guarantee program provides credit support to small and medium-sized enterprises that have difficulty accessing financing through financial institutions due to insufficient collateral or low credit ratings. The city expects the expanded contribution to improve financial access for local businesses and help stabilize their operations.
The city is also expanding its interest subsidy support. It will increase the related budget from 50 million won to 200 million won to ease the interest burden on businesses using the special guarantee program, and will extend the subsidy period from one year to two years.
Companies using the special guarantee program will receive interest support for a longer period, reducing their financing costs and helping stabilize their operations.
Seok Tae-hun, head of the city's business support division, said the decision to expand both programs was aimed at "meaningfully easing the financial burden on our city's small and medium-sized enterprises that are struggling to raise funds." He added that the city would "actively support businesses in sustaining stable operations through the expanded guarantee contribution and the extended interest subsidy period."
pjh@heraldcorp.com
