Daegu Launches Ultra-Low Interest Rate Loan Project to Revitalize Traditional Markets

TechubNews · 2026-03-13T13:56:41+00:00

The Daegu region will launch a low-interest loan program to support small and micro enterprises in traditional markets and alley business districts. iM Bank has signed an agreement with local government and relevant institutions to provide loans at an annual interest rate of approximately 1.56%, which will help ease the financial burden on merchants and promote regional economic vitality.

TechubNews

2026-03-13 13:56:41

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A low-interest loan program to support traditional markets and alleyway commercial districts in Daegu is about to launch. iM Bank announced that it has signed the “Daegu-Type Win-Win Financial Business Agreement” with Daegu City, the Daegu Gyeongbuk Regional Small and Medium Business Administration, the Small Business Market Revitalization Corporation, the Daegu Credit Guarantee Foundation, and the Daegu Merchants Association. The purpose of this agreement is to reduce the interest burden on micro and small businesses and help them operate stably.

Under this agreement, Daegu City will provide a one-year 2.0 percentage point interest subsidy based on policy funds from the Small Business Market Revitalization Corporation. As a result, micro and small businesses can obtain guaranteed secured loans with an annual interest rate of approximately 1.56% for one year. This initiative is expected to significantly ease financial burdens, targeting small and micro enterprises and individual entrepreneurs within traditional markets and alleyway districts in Daegu that participate in the “Onnuri Gift Certificates” program.

Applying for a loan involves several steps. Small and micro businesses must obtain a financing recommendation from the Small Business Market Revitalization Corporation, secure guarantee approval from the Daegu Credit Guarantee Foundation, and then visit an iM Bank designated branch to submit a loan application. To support this, iM Bank has set aside 50 billion KRW specifically for this loan program.

Financial institutions and local governments collaborating in this manner aim to jointly support small and micro businesses, which is expected to positively impact regional economic vitality. Especially, this low-interest loan program is anticipated to provide crucial assistance to small and micro enterprises struggling due to the COVID-19 pandemic. If subsequent support projects operate stably, more regional economic participants are expected to benefit.

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