The Saemaul Geumgo Central Association is teaming up with Jeju Island and the Jeju Credit Guarantee Foundation to offer a special guarantee support worth 15 billion won for small businesses in the province. The Saemaul Geumgo Central Association signed a business agreement for the "Special Guarantee for Small Business Support" with Jeju Island and the Jeju Credit Guarantee Foundation on the afternoon of the 10th at the Provincial Office's Baeknok Hall.
This special guarantee began with the Saemaul Geumgo Central Association contributing 1 billion won, marking the first such initiative in the nation for Jeju Island. Through this, guarantees worth 15 billion won will be provided to small businesses in the province facing management difficulties. Eligible businesses are those that received the management stabilization fund recommendation from small and medium-sized enterprises in Jeju Island and will undergo the guarantee procedure of the Jeju Credit Guarantee Foundation.
In particular, the plan is to lower guarantee fees and compensate for the interest difference of 2.5%, alleviating the financial burden on small businesses. This special guarantee has significantly relaxed the guarantee review standards to allow businesses with insufficient credit or collateral to receive guarantee support.
Based on an average guarantee amount of 30 million won, more than 500 businesses are expected to benefit, with an anticipated annual financial cost reduction effect of up to 1.14 million won per business, according to the province.
Kim In, the chairperson of the Saemaul Geumgo Central Association, noted, "As the sluggish consumption continues due to economic recession and high interest rates and inflation, the difficulties for small businesses are increasing. I hope this serves as a practical help for small business owners in Jeju so they do not lose hope and can continue their operations."