The Incheon Metropolitan Government will provide 5.4 billion won ($3.9 million) in loans this year to ease the financial burden on social economy enterprises. The city will cover annual loan interest of 2% for three years on behalf of borrowers, which is expected to save each company several million won in costs.
The loan pool consists of 4.4 billion won from the Korea Credit Guarantee Fund and 1 billion won from the Incheon Credit Guarantee Foundation, the city said Monday. Borrowers can obtain loans through Shinhan Bank. Preliminary and certified social enterprises and cooperatives are eligible for up to 300 million won, while village enterprises and self-sufficiency enterprises can borrow up to 100 million won.
The application process is straightforward. Applicants obtain a guarantee certificate from the Korea Credit Guarantee Fund's Incheon branch or the Incheon Credit Guarantee Foundation, then apply for a loan at Shinhan Bank.
Since launching the program in July 2020, the city has supported 150 local enterprises with a total of 14.55 billion won through the end of last year. Interest subsidies totaling 688 million won have saved each company an average of approximately 4.6 million won in interest costs. The city has allocated 150 million won for interest subsidies this year.
"We hope this will help alleviate the financial burden on social economy enterprises struggling amid the economic downturn and support the realization of social value," said Kim Sang-gil, head of the Economy and Industry Division at Incheon Metropolitan Government. "We will continue to expand policy support to strengthen their growth foundations."