Saemaul Geumgo to Provide $1.5 Billion in Low-Interest Loans for Small Businesses

Saemaul Geumgo is launching a community-focused financial support initiative to alleviate the financial burden on small businesses and micro-enterprises.

On August 18, Saemaul Geumgo announced its 'Local Government Cooperative Financial Support Project' aimed at small businesses and micro-enterprises.

This initiative is part of Saemaul Geumgo's Vision 2030, which includes a 'Community Revitalization and Social Solidarity Financial Package' in collaboration with public and private sectors. Saemaul Geumgo will contribute funds to local credit guarantee foundations, which will then guarantee loans for small businesses. Based on this, Saemaul Geumgo will offer low-interest loans, while local governments will support the interest payments on these loans.

Last year, Saemaul Geumgo contributed 6 billion won, facilitating approximately 80 billion won in low-interest loans. This year, the contribution has been increased to 16.5 billion won, with 526 Saemaul Geumgo branches participating in the initiative to support 200 billion won in low-interest loans.

Support will also be expanded regionally. In Jeju, Saemaul Geumgo has signed agreements with the Jeju Provincial Government and the Jeju Credit Guarantee Foundation to provide 10 billion won in low-interest refinancing loans targeted at small businesses with low to moderate credit ratings. This effort aims to reduce the interest burden on small businesses currently utilizing high-interest loans.

In September, an additional 15 billion won in special guarantee loans for small businesses (operating funds) will also be introduced.

A representative from Saemaul Geumgo Central Association stated, "We initiated this project to reduce the financial burden on small businesses and micro-enterprises as a cooperative that thrives with the community. We will continue to provide support tailored to the financial needs of the region and fulfill our role as a financial institution that coexists with the community."

* This article has been translated by AI.