The Korea Federation of Small and Medium Enterprises said on the 28th it will expand guarantee support under partnership agreements to stabilize the management of small businesses and the self-employed enrolled in Yellow Umbrella.
Yellow Umbrella is a mutual aid program run by the Korea Federation of Small and Medium Enterprises to support the livelihood stability of small businesses and the self-employed and provide opportunities to restart their businesses.
KBIZ and Shinhan Bank, through a business agreement in May, granted 1 billion won to the Korea Federation of Credit Guarantee Foudations (KOREG) and supported loans totaling about 13 billion won for more than 400 Yellow Umbrella subscribers. In addition, they plan to grant an additional 1.5 billion won to support loans totaling about 20 billion won.
Within a guarantee amount of up to 50 million won per applicant company, the guarantee limit will be preferentially raised to 150%. The guarantee fee rate, which is the guarantee commission, will also be set at an annual 0.8%, down 0.2 percentage point from standard guarantee products.
Interested self-employed individuals can apply for a guarantee at any branch of their regional credit guarantee foundation. For details, consult the KOREG and the 17 regional credit guarantee foundations (main number 1588-7365).
KBIZ Chairman Kim Ki-moon said, "I hope the expansion of financial support through Yellow Umbrella, the social safety net for the self-employed, will help the business operations of small businesses and the self-employed, even if only a little," adding, "We will continue efforts so that more self-employed people can receive a variety of support."