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Busan Metropolitan City Signs Agreement on Policy Loan Support for Small Business Owners, Moving Forward in Earnest to Ease Financial Burdens

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will sign an agreement for policy loan support for small business owners today (the 9th) at 9:40 a.m. in Small Conference Room 1 on the 12th floor of City Hall.

This agreement has been prepared to alleviate the difficulties faced by local small business owners and self-employed individuals, as Busan Bank will contribute KRW 10 billion to the Busan Credit Guarantee Foundation to support policy loans for small business owners.

In particular, this agreement is meaningful as an example of inclusive finance and shared-growth financial cooperation, in which a local financial institution participates together to support the recovery of the local economy and stabilize the management of small business owners, in line with the financial sector’s commitment to inclusive finance and regional coexistence.

The agreement ceremony will be attended by Mayor Park Heong-joon, Kim Seong-ju, President of Busan Bank, Gu Gyo-seong, Chairperson of the Busan Credit Guarantee Foundation, and local small business owners.

Through this agreement, the City, Busan Bank, and the Busan Credit Guarantee Foundation will support special financing for small business owners totaling KRW 150 billion based on their cooperative framework.

The City will secure financial resources for guarantees and budgets for interest subsidies, Busan Bank will provide special contributions and preferential interest rates, and the Busan Credit Guarantee Foundation will offer credit guarantees based on the contributed funds.

In particular, the City has raised the interest subsidy rate from 1.0 percent last year to 1.5 percent this year, further easing the financial burden on small business owners.

An additional 1.0 percentage point of interest subsidy will be provided to certified Good Price Stores, for a maximum support rate of up to 2.5 percent.

Through these measures, the City expects to contribute to alleviating management difficulties for small business owners and revitalizing the local economy.

Immediately after the agreement ceremony, Mayor Park will meet with small business owners who have overcome difficulties by utilizing the City’s policy loans at a livelihood stabilization meeting for small business owners, where he will listen to on-site opinions.

Participating representatives of small business owners plan to share the tangible effects of the support policies, actual growth cases, and difficulties faced in the field.

Meanwhile, the City is providing KRW 1.465 trillion in policy financing this year to resolve management difficulties for small and medium-sized enterprises and small business owners and to revitalize the local economy, and plans to continuously expand the scale of policy loan support through the formulation of supplementary budgets.

Mayor Park Heong-joon is expected to say, “I am well aware that small business owners continue to face significant difficulties due to high interest rates and economic slowdown. I find it very meaningful that the financial sector has joined efforts to support policy loans for local small business owners. Going forward, the City will continue to work closely with the Credit Guarantee Foundation and financial institutions to create an environment in which small and medium-sized enterprises and small business owners can focus on stable management, and to inject vitality into the local economy.”