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Busan Metropolitan City to Strengthen Support for Good Price Stores, Launching “Special Policy Financing Support” in Earnest

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will fully implement a “Special Policy Financing Support” program for City-designated Good Price Stores in order to ease the management burden on small business owners struggling amid high inflation and to contribute to price stability experienced by citizens.

The “Special Policy Financing Support” program has been 마련ed under a tripartite business agreement among Busan Metropolitan City, the Busan Credit Guarantee Foundation, and Busan Bank. Once a business is confirmed as a City-designated Good Price Store, it becomes eligible for a loan of up to KRW 100 million, with Busan Metropolitan City subsidizing 2.5 percent (%) of the interest paid by the business.

Considering that the average interest rate for policy loans provided by the Busan Credit Guarantee Foundation is in the high 4 percent to 5 percent range, a KRW 100 million loan would normally result in an annual interest burden of about KRW 5 million. Under this structure, general small business owners would receive approximately KRW 1.5 million per year in interest support, while Good Price Stores would receive approximately KRW 2.5 million per year.

Loan repayment options can be selected according to each business’s circumstances, including “five-year principal and interest repayment” or “one-year grace period followed by four years of interest repayment.”

Through this support, the City expects to reduce the management burden on Good Price Stores and expand voluntary participation, leading to price stability that citizens can tangibly experience in their daily lives.

Given the difficult economic conditions characterized by high inflation, high interest rates, and high exchange rates, which are pushing small business owners toward the risk of closure, the City determined that reducing financing costs is the most direct and effective form of support.

This special financing program and the expanded interest subsidy are significant as livelihood-focused measures that both alleviate financial difficulties for small business owners and reduce the burden on household shopping expenses for citizens.

In particular, the City plans to actively promote the expansion of designation and participation so that greater recognition is given to the contributions of Good Price Stores that have supported local communities while maintaining reasonable prices, and so that such mutually beneficial efforts can spread to more businesses.

Applications for policy financing support for Good Price Stores will be accepted from February 13 through the end of the year, following consultation with the Busan Credit Guarantee Foundation, with applications submitted through Busan Bank.

Good Price Stores wishing to apply for preferential loans and interest support must obtain a certificate confirming their designation as a Good Price Store from the relevant district office and submit their application through Busan Bank branches that have agreements with the Busan Credit Guarantee Foundation.

Kim Kyung-duk, Assistant Mayor of Digital Economy Office of Busan Metropolitan City, stated, “Through the implementation of the special financing support program for Good Price Stores, we will ease the management burden on businesses that are contributing to price stability and expand practical support,” adding, “We will do our utmost to stabilize citizens’ livelihoods by expanding the designation and revitalizing participation in the Good Price Store program.”