Chungnam Credit Guarantee Foundation to Provide Record 1.33 Trillion Won in Guarantees This Year

Expansion of Low-Interest Policy Funds and Refinancing Guarantees
Full-Scale Support for Recovery and Restart of Small Business Owners

On the 27th, Cho Sohang, Chairman of Chungnam Shinbo, held a press conference at Chungnam Provincial Government Office and announced that guarantee support would be provided on the largest scale in history this year.

The Chungnam Credit Guarantee Foundation will provide the largest guarantee support in its history this year for small and medium-sized enterprises (SMEs) and small business owners.

To alleviate the accumulated management burdens caused by high interest rates and an economic slowdown, the foundation will expand its guarantee scale and has introduced a comprehensive plan combining financial and non-financial support.

On the 27th, the Chungnam Credit Guarantee Foundation held a press briefing at the provincial press center and announced the "2026 Comprehensive Support Plan for SMEs and Small Business Owners."

The foundation has set the 2026 new guarantee supply at 1.33 trillion won, the largest since its establishment. Of this, 950 billion won will be allocated for low-interest policy and special funds to support the recovery and growth of small business owners, including 600 billion won from Chungnam Province's small business funds and 350 billion won in government policy guarantees.

Additionally, 380 billion won will be allocated for refinancing guarantees to reduce the financial burden on multiple debtors and business closure cases.

Existing COVID-19 loans will be converted to low-interest loans with installment repayment within seven years, with a 1 percentage point interest subsidy and a 0.4% guarantee fee rate. Bridge guarantees for business closures are designed to support business recovery, offering up to 15 years of installment repayment and full exemption from guarantee fees.

The additional guarantee fee for maturity extension, which has increased the burden on micro-business owners, will be completely abolished. The maturity extension guarantee fee itself will be capped at a maximum of 1%.

The foundation also plans to introduce a mobile financial consultation bus to directly visit financially vulnerable areas, providing on-site consultations and policy guidance at traditional markets and shopping districts more than 50 times a year.

Furthermore, new programs will be introduced, including a dedicated card guarantee for small business operating funds, an overdraft guarantee with a limit of 10 million won, and agreement guarantees targeting the food service industry, livelihood-based manufacturing, and neighborhood businesses.

Non-financial support will also be expanded. In 2026, the target for education and consulting support is set at 5,000 sessions, an increase of more than 35% compared to the previous year. This includes education for 3,000 people, 76 training sessions touring 15 cities and counties, and 2,000 one-on-one customized consulting sessions.

Financial welfare counseling and consulting for financially vulnerable groups and companies in crisis will also be expanded to 1,500 cases.

In addition, companies with signs of management crisis, such as declining sales, will be proactively identified using data and supported through a three-step package combining education, consulting, and credit guarantees.

In regions experiencing population decline, the foundation will foster local mentors and build networks to create a youth entrepreneurship ecosystem.

Chairman Cho Sohang stated, "Along with the largest guarantee supply ever, we will strengthen support for finance, education, consulting, and financial welfare that can be felt in the field. The foundation will serve as a reliable pillar so that SMEs and small business owners in Chungnam can get back on a growth trajectory."

This content was produced with the assistance of AI translation services.