Gyeongsangbuk-do is expanding the scale of its loan support for small business owners to 300 billion won and its interest subsidy budget to 12 billion won by 2030.

On the 12th, the province signed a business agreement to expand "Gyeongbuk Beutim Financial Support" with the Gyeongbuk Credit Guarantee Foundation and five commercial banks at the Sarim Office of the Provincial Government. Attendees at the signing ceremony included Gyeongsangbuk-do Governor Lee Cheol-woo, Gyeongbuk Credit Guarantee Foundation Chairman Kim Jung-kwon, NH Nonghyup Bank Gyeongbuk Headquarters Head Kim Jin-wook, iM Bank Credit Group Head Ryu Hee-jang, KB Kookmin Bank Gyeongbuk Regional Headquarters Representative Lee Mi-sook, Hana Bank Daegu-Gyeongbuk Sales Headquarters Regional Representative Cho Sang-rae, and Shinhan Bank Daegu-Gyeongbuk Western Headquarters Head Shin Jang-sik.

The province will increase its interest subsidy budget—which covers 2% of the loan interest paid by small business owners for two years—from 8 billion won to 12 billion won by 2030. The scale of loan support will also be expanded step-by-step to 300 billion won by 2030. The Gyeongbuk Credit Guarantee Foundation and the five commercial banks will make special contributions to guarantee resources and support the issuance of guarantee certificates, while the province strengthens its cooperative system to ensure that more small business owners can benefit from the expanded scale of support.

This agreement is a financial support measure designed to enhance the self-sufficiency of small business owners within the province amid a prolonged economic crisis. Recently, business conditions for small business owners have deteriorated due to sustained high inflation, high interest rates, and high exchange rates, alongside the reduction of the regional credit guarantee foundation's reinsurance ratio last August. Through this expanded support, the province plans to prevent the spread of default risks and curb the increase in multiple debtors who take out high-interest loans again to pay off existing loans.

Gyeongsangbuk-do Governor Lee Cheol-woo stated, "I would like to thank the five commercial banks and the Gyeongbuk Credit Guarantee Foundation for joining forces to serve as a reliable pillar of support for the management difficulties experienced by small business owners in the province due to recent worsening internal and external conditions." He added, "We will spare no effort in providing a robust financial safety net so that small business owners can focus on their livelihoods and recover their self-sufficiency."

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