Business · Economy · 2 hrs ago
North Gyeongsang to expand loans and interest support for small businesses
North Gyeongsang Province in South Korea has agreed with a credit guarantee foundation and five banks to expand financial support for small businesses.
The province plans to increase its loan support gradually to 3 trillion won by 2030.
It will also raise its annual budget for interest subsidies from 8 billion won to 12 billion won by that year.
The province will cover 2 percent of borrowers’ interest costs for two years.
The plan comes as high prices, interest rates and exchange rates have made business conditions harder, and a reduction in a regional guarantee ratio added pressure in August.
The province says the expanded support is intended to reduce business failures and stop owners from taking on new, high-interest loans to repay existing debt.
The credit guarantee foundation and the banks will contribute guarantee funds and help issue guarantees.
North Gyeongsang Province signed an agreement with a credit guarantee foundation and five commercial banks to expand loan support for small businesses.
The province plans to increase its loan support to 300 billion won by 2030.
It will raise the budget for interest support from 8 billion won to 12 billion won by 2030.
The province will cover 2% of eligible loan interest for two years.
The expansion aims to curb rising business risks and prevent more small-business owners from taking high-interest loans to repay existing debt.
- Who
- North Gyeongsang Province, the North Gyeongsang Credit Guarantee Foundation and five commercial banks.
- What
- They signed an agreement to expand loans and interest support for small businesses.
- When
- October 12, 2026.
- Where
- The provincial government office in North Gyeongsang.
- Why
- The province said small businesses face worsening conditions amid high prices, interest rates and exchange rates, as well as a reduced re-guarantee rate.
This story does not have two clearly opposing sides.
We will spare no effort in supporting a financial safety net so small-business owners can focus on their livelihoods and regain self-reliance.
North Gyeongsang Province signed an agreement with the credit guarantee foundation and five banks to expand its loan support.
The province plans to increase the interest-support budget to 12 billion won and the loan-support scale to 300 billion won.
- Interest support
- 2% of loan interest for two years
- Interest-support budget
- To rise from 8 billion won to 12 billion won by 2030
- Loan-support scale
- To expand to 300 billion won by 2030
- Participating banks
- NH NongHyup Bank, iM Bank, KB Kookmin Bank, Hana Bank and Shinhan Bank
- Agreement date
- October 12, 2026
Sources
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