Woowa Brothers, the operator of Baedal Minjok, announced on the 23rd that it will implement a 100 billion won guarantee loan program for small business owners in the restaurant industry and traditional markets in partnership with KakaoBank and regional credit guarantee foundations.
On that day, Woowa Brothers signed a financial support agreement for small business coexistence with KakaoBank at the Lotte World Tower in Songpa-gu, Seoul. The signing ceremony was attended by Bom Kim, CEO of Woowa Brothers, and Yoohong Kim, CEO of KakaoBank, along with other key officials from both companies.
Previously, Woowa Brothers had conducted a 100 billion won guarantee loan program with banks and the Central Credit Guarantee Fund last year. Through the guarantee loan program with these two institutions, they supported small business owners who found it difficult to obtain loans due to low credit ratings or lack of collateral, allowing them to receive loans at low interest rates. Over the past year, more than 2,600 small business owners and self-employed individuals executed an average guarantee loan of 40 million won.
The second project proceeding based on this agreement has improved the convenience and accessibility for applicants. First, Woowa Brothers and KakaoBank will each contribute 3.5 billion won, totaling 7 billion won, as guarantee funds.
The regional credit guarantee foundations will utilize the guarantee funds to issue guarantee certificates to small business owners, after which KakaoBank will conduct loan assessments and disbursements based on these certificates.
Participating institutions aim to alleviate the burden on small business owners facing difficulties due to worsening management by providing low-interest loan programs to those in urgent need of funds. Depending on the local government's interest compensation policy, the rate can be reduced to as low as 1%.
Additionally, regardless of credit ratings, all applicants will receive the same interest rates, with support expanded to include a 50% refund of the guarantee fee and exemption from early repayment fees.
Applicants can conveniently apply online through the guarantee loan tab within the KakaoBank app or by visiting the business sites of regional credit guarantee foundations where their establishments are located.
The guarantee limit is up to 100 million won, the guarantee period is up to 5 years, and favorable repayment options can be chosen, including a lump-sum repayment at a 2-year maturity or a 1-year grace period followed by 4 years of partitioning repayments.
Ten regions, including Busan, Daegu, Gyeongnam, Gyeongbuk, Sejong, Ulsan, Gwangju, Jeonnam, Chungbuk, and Chungnam, are scheduled to implement the project starting from the 24th and will be expanded nationwide within the first half of the year.