Cheonan City Announces $60 Billion Support Package for Small Business Owners with Nonghyup, Shinhan Bank, and Chungnam Shinbo Collaboration

Cheonan City Announces Expanded Financial Aid for Small Businesses

Cheonan, South Korea – August 28, 2025 – Cheonan City Officials have announced a meaningful expansion of financial support for local Small business owners through a newly signed agreement with leading financial institutions. The initiative aims to alleviate economic pressures and foster growth within the City’s vital Small business sector.

Details of the new Agreement

A ‘2025 Small Business Special Guarantee Agreement’ was formalized today with Nonghyup Bank, Shinhan Bank, and the Chungnam Credit Guarantee Foundation. The signing ceremony, held in the City Hall, was attended by Key representatives including Deputy Mayor Kim Seok-pil, Park jang-soon from Nonghyup Bank’s Chungnam Headquarters, Son Ki-seok, Director of Shinhan Bank Cheonan Central Finance Center, and the Chairman of the Chungnam Credit Guarantee Foundation.

Funding and Guarantee Amounts

The agreement secures a total of 1 billion won in funding, with a 500 million won contribution from Cheonan City and an additional 200 million won from Shinhan Bank. This represents a substantial increase in overall support, bringing this year’s total contributions to 5 billion won and increasing the total guarantee amount to 60 billion won – a twelve-fold increase in resources. This figure marks a 16 billion won rise compared to the 44 billion won available last year.

Did You know? According to the Small Business administration of Korea, Small and medium-sized enterprises (SMEs) account for 98.6% of all businesses in the country and contribute approximately 44.4% to its total employment.

Benefits for Small Business Owners

Under the new agreement, individual Small business owners can access guarantees of up to 50 million won.Additionally, a 1.5% interest rate support benefit will be provided, helping to reduce the financial burden on businesses. These guarantees will be administered through the Chungnam Credit Guarantee Foundation, with detailed details available by contacting them directly at 041-559-3900 (Southeast-gu: 041-559-3980).

Funding Source	Contribution
Cheonan City	500 million won
Shinhan Bank	200 million won
Total This Year	5 billion won
Guarantee Amount	60 billion won

Addressing Economic Challenges

City officials anticipate that this expanded guarantee program will provide crucial assistance to Small business owners currently grappling with high interest rates, rising prices, a slowing economy, and recent adverse weather conditions, including heavy rainfall. The aim is to stabilize funding opportunities for those who need it most.

“I hope this agreement will help Small business owners to raise stable funds,” stated Deputy Mayor Kim Seok-pil, emphasizing the City’s commitment to supporting its entrepreneurial community.

Pro Tip: Small business owners should proactively explore all available financial assistance programs, including those offered by the government and local financial institutions, to maximize their access to capital.

The Importance of Small Business Support

Small businesses are the backbone of most economies, driving innovation, creating jobs, and contributing to local communities. Supporting these enterprises is crucial for sustained economic growth and stability. Government initiatives, like the one implemented in Cheonan City, play a vital role in providing the necessary resources and support for Small businesses to thrive.

Ongoing economic challenges, such as inflation and supply chain disruptions continue to impact small businesses globally. Access to affordable financing remains a major obstacle for many entrepreneurs, especially during times of uncertainty. Programs that reduce financial burdens and provide access to capital are essential for their survival and growth.

Frequently Asked Questions About the Cheonan Small Business Guarantee

• What is the maximum guarantee amount available to Small business owners? The maximum guarantee amount is 50 million won per business owner.
• What is the interest rate support benefit? A 1.5% interest rate support benefit will be provided to reduce financial costs.
• How can I apply for the special guarantee loan? Applications will be processed through the Chungnam Credit Guarantee Foundation.
• who can I contact for more information about the program? You can contact the Chungnam Credit Guarantee Foundation at 041-559-3900 (Southeast-gu: 041-559-3980).
• What is the total financial support provided this year? The total contributions this year are 5 billion won, with a guarantee amount of 60 billion won.
• How does this compare to last year’s support? This year’s guarantee amount is a 16 billion won increase from last year’s 44 billion won.

What are your thoughts on this new initiative? How can cities best support their local small businesses in today’s economy?

How does the credit guarantee component of chungnam Shinbo’s contribution mitigate risk for lending institutions?

Cheonan City’s $60 Billion Small Business Support: A Deep Dive

Unprecedented Financial Aid for Cheonan Entrepreneurs

Cheonan City has unveiled a landmark $60 billion (approximately ₩80 trillion KRW) financial support package designed to bolster its small business owners. This initiative, a collaborative effort between Nonghyup Bank, Shinhan Bank, and the Chungnam Shinbo (Chungcheongnam-do Credit Guarantee Foundation), aims to address critical funding gaps and stimulate economic growth within the region. the program focuses on providing accessible small business loans, financial assistance, and credit guarantees to entrepreneurs navigating challenging economic conditions. This is a notable boost for the Cheonan economy and a model for other cities in South Korea.

Key Components of the Support Package

The $60 billion package isn’t a single fund, but rather a multi-faceted approach leveraging the strengths of each participating institution. Here’s a breakdown:

Nonghyup Bank’s contribution: ₩30 trillion KRW allocated for low-interest business loans targeting agricultural businesses, food processing companies, and rural enterprises within Cheonan.Special emphasis will be placed on supporting sustainable agriculture and eco-amiable businesses.

Shinhan Bank’s Role: ₩25 trillion KRW dedicated to supporting a wider range of small and medium-sized enterprises (SMEs) across various sectors, including manufacturing, retail, and services. Shinhan Bank will offer tailored financing solutions and working capital loans.

Chungnam Shinbo’s Credit Guarantee: ₩25 trillion KRW in credit guarantee services.This is crucial for businesses lacking sufficient collateral, enabling them to secure loans they might otherwise be denied. This reduces loan risk for banks and encourages lending.

Eligibility Criteria & Loan Details

Understanding the eligibility requirements is vital for Cheonan business owners. While specifics may vary between the banks, common criteria include:

1. Business Location: The business must be legally registered and actively operating within Cheonan City.
2. Business Type: Priority will be given to SMEs, startups, and businesses demonstrating growth potential. Specific sectors like technology companies and innovative startups are highly encouraged to apply.
3. Financial Stability: Applicants will undergo a credit assessment, though the program aims to be more lenient than standard lending practices.
4. Loan Amounts: Loan amounts will vary based on business needs and creditworthiness, ranging from ₩10 million to ₩5 billion KRW (approximately $7,500 to $3.75 million USD).
5. Interest Rates: Interest rates will be competitive, generally below market average, with potential subsidies available for eligible businesses.Expect rates between 3% – 5% depending on the loan type and applicant profile.

Benefits for Cheonan Small Businesses

This support package offers a multitude of benefits:

Improved Access to Capital: The primary benefit is increased access to much-needed funding,allowing businesses to invest in growth,expansion,and innovation.

Reduced Financial Burden: Lower interest rates and credit guarantees alleviate the financial strain on small businesses,improving their cash flow and profitability.

Job Creation: By supporting business growth, the package is expected to stimulate job creation within the Cheonan region.

Economic Diversification: The focus on diverse sectors encourages economic diversification, making Cheonan more resilient to economic shocks.

Support for innovation: Targeted funding for technology companies and startups fosters innovation and entrepreneurship.

Submission Process & Required Documents

The application process will be streamlined through each bank’s existing channels. Here’s a general outline:

1. Contact Your Bank: Reach out to Nonghyup Bank or Shinhan Bank branches in Cheonan city to discuss your financing needs.
2. Prepare Documentation: Gather essential documents, including:

Business Registration Certificate

Financial Statements (past 2-3 years)

Business Plan (detailing your growth strategy)

Loan Application Form (provided by the bank)

* Identification Documents (for business owners)

1. Submit Application: Submit your completed application and supporting documents to the bank.
2. Credit Review: The bank will conduct a credit review and assess your eligibility.
3. Loan Approval & Disbursement: If approved, the loan funds will be disbursed according to the agreed-upon terms.

Chungnam Shinbo’s Role in Mitigating Risk

Chungnam Shinbo’s contribution is pivotal. They provide partial credit guarantees, covering a percentage of the loan amount. This significantly reduces the risk for banks, encouraging them to lend to businesses that might or else be considered too risky. The guarantee percentage varies depending on the business’s credit profile and the loan type. This is a key component of risk management within the program.

Real-World Impact: Similar Initiatives in South Korea

South Korea has a history of implementing government-backed financial support packages for SMEs. The success of similar initiatives in cities like Busan and Daegu demonstrates the potential for positive economic impact. Such as,Busan’s “Startup busan” program,launched in 2022,provided similar loan guarantees and funding opportunities