Business · Companies · 2 hrs ago
Busan credit foundation plans wider support for small businesses
Kim Hyun-jun, head of the Busan Credit Guarantee Foundation, says it aims to support local small businesses from start-up through recovery after a crisis.
He says businesses in Busan face high interest rates, rising prices and weak domestic demand, which can make it harder to borrow and stay afloat.
The foundation plans to combine financing with education, business advice, debt counselling and help with restarting after closure.
Since September, Busan and five financial institutions have been providing 700 billion won in guarantees, including 500 billion won for new working capital and 200 billion won to ease repayment burdens on existing loans.
The foundation says it is also working on debt adjustment and credit recovery, after writing off 31 billion won in bad debt last year and providing 51.8 billion won in guarantees for restarting businesses.
Kim says support should be judged by lower costs and more stable businesses, and the foundation plans to keep developing aid suited to businesses’ needs.
Busan Credit Guarantee Foundation chief Kim Hyun-joon says the foundation will expand support for small businesses across every stage of their life cycle.
The plan combines financing with business advice, debt adjustment, financial counselling and support for restarting businesses.
The foundation is also providing loan guarantees linked to Busan’s economic recovery measures.
Kim said small businesses face high interest rates and prices, weak domestic demand, population decline and changing consumer habits.
- Who
- Kim Hyun-joon, head of the Busan Credit Guarantee Foundation, outlined the plans.
- What
- The foundation plans to strengthen financing and other support for small businesses, including advice, debt adjustment and help with restarting businesses.
- When
- Kim discussed the plans in an interview on November 6, 2026.
- Where
- Busan, South Korea.
- Why
- Small businesses face financial and structural pressures, and access to finance can affect their survival.
This story does not have two clearly opposing sides.
The foundation wrote off 31 billion won in bad debt and provided 51.8 billion won in new guarantees through programs for restarting and supporting business owners who try again.
The foundation arranged 150 billion won in special funding based on a 10 billion won contribution from Busan Bank.
Busan and five financial institutions began providing support under a 700 billion won livelihood-stability guarantee agreement, including 500 billion won in new working capital and 200 billion won in conversion guarantees.
Kim Hyun-joon outlined plans to expand support for small businesses in an interview with Yonhap.
- Livelihood-stability guarantee agreement
- 700 billion won
- New working capital under the agreement
- 500 billion won
- Conversion guarantees under the agreement
- 200 billion won
- Special funding arranged in February
- 150 billion won
- Bad debt written off last year
- 31 billion won
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What people are saying
We will strive to make the foundation a comprehensive support institution that is responsible for the financial safety net of local small businesses and supports small business owners throughout their entire life cycle.
The performance of policy finance should be judged not only by the scale of supply, but also by real reductions in small business owners’ financial costs and by business stability.