Up to KRW 300,000,000 for Small Businesses Affected by Heavy Rain in Geoje and Tongyeong: Disaster Certificates Determine Eligibility for Special Disaster Loan Terms
Simply having a business location in Geoje or Tongyeong does not automatically qualify a business for the special disaster provisions of the Emergency Management Stabilization Fund. As of 2026-10-07, the primary beneficiaries are small businesses that suffered damage from the recent heavy rainfall and obtained a disaster certificate from their local government. Preferential terms for small businesses are scheduled to take effect from the 3nd week of October, and the maximum KRW 300,000,000 represents a loan limit, not a cash payment.
Who Qualifies for the Special Disaster Loan Terms in Geoje and Tongyeong?
The first things to verify under this special support program are whether the business actually suffered damage from the heavy rainfall and whether a disaster certificate has been issued, rather than simply checking its business address.
The disaster financing support measures announced by the Ministry of SMEs and Startups target businesses affected by the 2026-08-21 heavy rainfall in Geoje and Tongyeong, which were designated as special disaster areas. Businesses that suffered flood damage and obtained a disaster certificate qualify for the special disaster provisions of the Emergency Management Stabilization Fund.
The steps small business owners should follow are therefore clear.
1. Confirm whether the business suffered damage from the heavy rainfall in Geoje or Tongyeong.
2. Report the damage to the local government with jurisdiction over the business.
3. Obtain a disaster certificate.
4. Check eligibility for the special disaster provisions of the Emergency Management Stabilization Fund for small businesses and confirm the application procedures.
This does not mean that simply operating a business in Geoje or Tongyeong entitles an owner to receive up to KRW 300,000,000.
The Maximum KRW 300,000,000 Represents a 3-Fold Increase From the Previous KRW 100,000,000 Limit
The preferential terms available to small businesses affected by the heavy rainfall in Geoje and Tongyeong provide higher loan limits, longer repayment periods, and lower interest rates than the standard disaster financing terms.
The maximum loan limit has increased from KRW 100,000,000 to KRW 300,000,000. According to the author's calculations, this represents an increase of KRW 200,000,000 in the loan limit, making it 3 times the previous limit.
The interest rate for direct loans will decrease from the previous annual 2.0% to a fixed annual rate of 1.5%. Loans provided through intermediary financial institutions will carry a fixed annual rate of 1.4%, under terms that account for guarantee fees.
The loan term will also increase from 5 years to 10 years. Previously, borrowers received a 2-year grace period followed by 3 years of installment repayments. Under the new preferential terms, the arrangement consists of a 5-year grace period followed by 5 years of installment repayments.
However, the maximum KRW 300,000,000 is not a subsidy paid automatically to every affected small business. It is the loan limit under the Emergency Management Stabilization Fund, so whether a business can actually obtain financing must be determined through the application process.
Preferential Terms for Small Businesses Are Scheduled to Take Effect From the 3nd Week of October
As of 2026-10-07, the preferential terms for small businesses are still awaiting implementation.
According to information released by the Ministry of SMEs and Startups on October 6, preferential support for SMEs begins on October 1, while preferential support for small businesses is scheduled to take effect from the 3nd week of October.
Small business owners should therefore not assume that the announced support of up to KRW 300,000,000 is already available. Instead, they should check the actual application guidance when they intend to apply.
Small Businesses That Have Already Received Disaster Financing Should Also Check Their Eligibility
Small businesses in Geoje and Tongyeong that suffered heavy rainfall damage and received Emergency Management Stabilization Fund financing under the previous terms before the announcement of these special disaster provisions are not necessarily excluded.
The Ministry of SMEs and Startups announced that small businesses and SMEs in Geoje and Tongyeong that suffered heavy rainfall damage and received financing under the terms in effect before the special disaster provisions were introduced would also have their financing terms changed to the preferential terms.
Therefore, businesses that have already received financing should check whether their existing loans qualify for the revised terms, separately from the question of taking out a new loan.
Businesses With Existing Policy Loans Should Also Check Special Maturity Extensions
The special disaster provisions do more than revise the terms of new Emergency Management Stabilization Fund loans. Special maturity extensions are also being pursued for affected businesses with existing policy financing loans.
For small businesses, existing loans are eligible for maturity extensions and repayment deferrals of up to 1 years, with a grace period of 1 years. However, borrowers whose loans qualify for special maturity extensions must continue making their regular interest payments.
Affected small business owners with existing policy loans should therefore check not only the maximum KRW 300,000,000 loan limit but also whether their current loans qualify for maturity extensions.
Prepare a Disaster Certificate Before Applying
The officially announced process begins with reporting the damage to the relevant local government and obtaining a disaster certificate.
After obtaining a disaster certificate, small business owners can contact the Integrated Small Business Support Call Center at 1533-0100 to confirm details related to financing applications.
In particular, 2026-10-07 falls before the scheduled implementation of preferential terms for small businesses in the 3nd week of October. Applicants should therefore reconfirm the application opening date and detailed submission procedures when they are ready to apply.
Three Key Distinctions to Understand About This Support Program
Small business owners affected by the heavy rainfall in Geoje and Tongyeong can better understand the announcement by distinguishing three important points.
First, the maximum KRW 300,000,000 is a policy loan limit, not a disaster relief grant. Second, simply being located in Geoje or Tongyeong is insufficient; actual rainfall damage and issuance of a disaster certificate are the key requirements. Third, as of 2026-10-07, preferential terms for small businesses are scheduled to take effect from the 3nd week of October.
Affected small business owners who have already received Emergency Management Stabilization Fund financing can also check whether they qualify for revised preferential terms. Those with existing policy loans can additionally verify their eligibility for special maturity extensions.
Businesses that have not yet reported their damage should first contact the relevant local government to confirm the damage reporting process and whether a disaster certificate can be issued. Once they have obtained the certificate, the clearest next step is to contact the Integrated Small Business Support Call Center to confirm the actual financing application requirements.