Milyang individual entrepreneurs can receive up to 50 million KRW in financial support... Gyeongnam Bank, the city government, and the Credit Guarantee Fund collaborate together

BNK Gyeongnam Bank collaborates with Milyang City, Gyeongnam Credit Guarantee Fund, and other regional public and financial institutions to officially launch a financial support program targeting small business owners in Milyang. This move aims to provide substantial financial assistance to small business owners facing financial difficulties due to deteriorating business environments.

BNK Gyeongnam Bank announced on January 6th that it has signed the “2026 First Half Milyang City Small Business Support Business Agreement.” The agreement involves Milyang City Government, Gyeongnam Credit Guarantee Fund, and several financial institutions including BNK Gyeongnam Bank. All parties have agreed to work together to promote regional economic recovery.

The main content involves each institution contributing a certain amount to the fund, which will serve as the basis for preparing guarantee funds to support low-interest loans. Gyeongnam Bank will contribute 150 million KRW to the Gyeongnam Credit Guarantee Fund in the name of guarantee funds and actively support the documentation and execution processes for related loan products. Milyang City will add an additional 350 million KRW and oversee the overall management of fund execution.

The total contribution from the institutions amounts to 800 million KRW, enabling the Gyeongnam Credit Guarantee Fund to provide approximately 12 billion KRW in guarantee support for small business owners in Milyang. The guarantee ratio is set at a more favorable 90% compared to the usual level, lowering the loan approval threshold and significantly improving financial accessibility for small business owners.

This financial support can reach up to 50 million KRW per household, with repayment options including a one-time repayment after 2 years or installment payments over 1-3 years after a 2-year grace period. The design appears to be flexible, accommodating individual entrepreneurs needing short-term funds as well as businesses requiring long-term repayment plans.

In the current economic uncertainty, this agreement is seen as a typical example of regional financial institutions seeking to grow together with small business owners. It is expected that such collaborations may spread to other local governments or financial institutions in the future, potentially having a positive impact on the regional financial ecosystem.