[Edaily Reporter Kim Se-yeon ] KakaoBank Corp.(323410)has become the first internet-only bank to partner with credit guarantee foundations in all 17 cities and provinces nationwide to establish a network of interest-subsidized loans for small business owners. Local governments and other entities will cover a portion of the loan interest, allowing small business owners to reduce their interest burden by up to 4 percentage points.

KakaoBank Corp. announced on the 11th that it had signed agreements with the Gyeonggi Credit Guarantee Foundation and the Jeju Credit Guarantee Foundation to launch “Interest-Supported Guaranteed Loans” aimed at providing financial support to small business owners in each region. With this, KakaoBank Corp. has now finalized agreements to launch interest-support products with all 17 metropolitan and provincial credit guarantee foundations nationwide.
The “Interest-Subsidized Guaranteed Loan” is a product designed for sole proprietors, in which public institutions or local governments cover a portion of the interest on guaranteed loans. It can reduce interest costs by up to 4 percentage points, significantly helping to ease the financial burden on small business owners.
KakaoBank Corp. first introduced the 100% online “Interest-Subsidized Guaranteed Loan” in 2024—the first among internet-only banks to do so—and has since continued to expand the service’s coverage. With the recent agreements with the Gyeonggi Credit Guarantee Foundation and the Jeju Credit Guarantee Foundation, the bank has completed agreements with all 17 city and provincial credit guarantee foundations nationwide in just over two years.
The total amount disbursed has also steadily increased. As of the end of July, KakaoBank Corp. had disbursed a cumulative total of approximately 1.2 trillion won in Interest-Supported Guarantee Loans. By providing low-interest loans to small business owners struggling to secure funds, the bank is helping to create a stable business operating environment.
Tangible savings on financing costs have also been realized. Small business owners who utilized KakaoBank Corp.’s interest-subsidized guaranteed loans benefited from an average interest rate reduction of 1.99 percentage points, securing loans at an average annual interest rate of 2.73%. The cumulative interest savings resulting from this amount to 23.6 billion won.
On the 5th, KakaoBank Corp. doubled the maximum limit for its “Self-Employed Guaranteed Loan” from 100 million won to 200 million won. This move aims to strengthen inclusive finance by supporting self-employed individuals who require larger amounts for business expansion or working capital. However, the maximum loan limit may vary depending on the product and the customer.
KakaoBank Corp. stated, “We have expanded the coverage areas under our agreement so that sole proprietors nationwide can receive financial support through KakaoBank Corp.’s interest-subsidized guaranteed loans,” adding, “We will continue to further expand financial support for sole proprietors and take the lead in revitalizing local economies and strengthening the self-reliance of small business owners.”