Incheon City Provides 50.5 Billion Won in Business Stabilization Funds to Small Business Owners Ahead of Chuseok

On September 14, the Incheon Metropolitan Government announced that it will provide 50.5 billion won in business stabilization funds to support small business owners facing a surge in capital demand ahead of the Chuseok holiday.

The recipients include small enterprises and small business owners based in Incheon, as well as companies affected by recent Homeplus store closures. The maximum loan amount is set at 50 million won per business.

The city will cover a portion of the interest expenses for recipients—2% per annum for the first year, and 1.5% per annum for the following two years. The guarantee fee rate will also be reduced to 0.8% per annum, lower than general guarantees, so that businesses can access funding at ultra-low interest rates.

Loans will be provided through seven partner banks: Shinhan Bank, NongHyup Bank, Hana Bank, KB Kookmin Bank, Woori Bank, KakaoBank, and K Bank. However, businesses that have already received Incheon’s business stabilization funds this year, companies that have obtained credit guarantee support from a guarantee foundation within the past three months, those with a total guarantee amount of 200 million won or more, companies in restricted sectors such as gambling, adult entertainment, leisure, or tobacco, and companies with overdue payments or other guarantee restrictions, will be excluded from eligibility.

Incheon City Hall

The city expects that this support will benefit over 1,700 small enterprises. Previously, the city provided 100 billion won in January and 114.5 billion won in March this year in business stabilization funding for small business owners.

An official from the Incheon Metropolitan Government stated, “This business stabilization fund is intended to ease the financial burden on small business owners who are experiencing cash flow pressure ahead of the holiday season and to help revitalize the local economy. We will continue to provide tailored financial support policies that small business owners can feel directly at the ground level without interruption.”

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