Seosan City Supplies 7.2 Billion KRW Small Business Special Loan Guarantees with up to 50 Million KRW Limit
Seosan City is providing 7.2 billion KRW in special loan guarantees with Hana Bank and Chungnam Credit Guarantee Foundation, offering up to 50 million KRW per business with a 1.5% interest subsidy for one year.
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Verified Facts and Reports
According to a report by Daejon Ilbo, Seosan City in South Chungcheong Province announced that it is pursuing additional special loan guarantee support for local small business owners. The report states that Seosan City and Hana Bank are contributing 300 million KRW each, totaling 600 million KRW, and the Chungnam Credit Guarantee Foundation plans to provide 7.2 billion KRW in special loan guarantees, which is twelve times the contribution amount. Eligibility is limited to small business owners operating a business located in Seosan City, and each enterprise can receive up to 50 million KRW in loan and credit guarantee support. The guarantee period for the loan is set at five years, and Seosan City stated that it provides an interest subsidy benefit supporting 1.5% interest per year for one year following the loan issuance. Daejon Ilbo reported that applications for this special loan guarantee open on October 15.
Donpoong Perspective
This support measure is evaluated as providing temporary financial relief to local self-employed business owners who have struggled to access conventional bank loans due to insufficient collateral or lower credit ratings. In particular, the condition subsidizing 1.5% interest annually for one year offers practical financial expense reductions for small business owners enduring high interest rate pressures. However, because the total guarantee volume is set at 7.2 billion KRW and capped at 50 million KRW per enterprise, the number of businesses that can ultimately receive benefits is naturally limited. As the program is highly likely to close early once the budget and guarantee ceiling are exhausted, business owners who require funds should proactively check and verify details right when applications open.
Practical Application and Checkpoints
Even business owners who meet the basic qualifications must carefully examine practical verification procedures and precautions before applying.
First, business owners must verify through official channels whether they satisfy all eligibility criteria as operating small businesses with registered workplaces in Seosan City.
Second, applicants must consider that the full ceiling of 50 million KRW per enterprise might not be granted or may be reduced depending on individual credit ratings and existing loan histories.
Third, the 1.5% annual interest subsidy provided by Seosan City applies solely for one year after the loan disbursement, meaning borrowers must reflect in their repayment plans that they will bear the full interest burden themselves for the remaining duration of the five-year guarantee period.
Finally, small business owners wishing to apply should contact the Seosan Branch of the Chungnam Credit Guarantee Foundation in advance to check detailed support terms, review required document checklists, and confirm application feasibility.
Sources and Reference Date
- Daejon Ilbo: Seosan City Supports 7.2 Billion KRW Special Loan Guarantee for Small Businesses with Hana Bank and Chungnam Credit Guarantee Foundation (Publication Date: 2026-10-14, Link: https://www.daejonilbo.com/news/articleView.html?idxno=2307010)
- Reference Date: 2026-10-15
