North Gyeongsang Province, credit guarantee foundation and five banks sign MOU to expand small-business loan support

North Gyeongsang Province signed an MOU with the North Gyeongsang Credit Guarantee Foundation and five commercial banks Monday to expand the province's "Gyeongbuk Buttim Finance" small-business loan support program at the provincial government building in Andong.

The signing ceremony was attended by North Gyeongsang Governor Lee Cheol-woo, North Gyeongsang Credit Guarantee Foundation Chairman Kim Jung-kwon, NH NongHyup Bank North Gyeongsang branch head Kim Jin-wook, iM Bank credit group head Ryu Hee-jang, KB Kookmin Bank North Gyeongsang regional head Lee Mi-sook, Hana Bank Daegu-North Gyeongsang regional representative Jo Sang-rae, and Shinhan Bank Daegu-North Gyeongsang western branch head Shin Jang-sik.

Under the agreement, the province will increase its interest subsidy budget — which covers 2 percentage points of loan interest for small-business owners over two years — from 8 billion won ($5.98 million) to 12 billion won by 2030. The total loan support pool will also expand in stages to 300 billion won by 2030.

The North Gyeongsang Credit Guarantee Foundation and the five banks will make special contributions to the guarantee fund and support the issuance of guarantee certificates, while the province will strengthen its cooperative framework to ensure more small-business owners benefit as the program grows.

"I extend my gratitude to the five commercial banks and the North Gyeongsang Credit Guarantee Foundation for joining us in our effort to be a reliable pillar of support for small-business owners in the province who are struggling amid deteriorating domestic and external conditions," Governor Lee said. "We will spare no effort in providing a solid financial safety net so that small-business owners can focus on their livelihoods and rebuild their self-sufficiency."