Support for traditional market small business owners hit by the Gyeongnam floods — with a disaster confirmation certificate (재해확인서), policy funds of up to 100 million won at 2% interest and guarantees of up to 300 million won
Source material is a Korean government announcement (in Korean).
Small business owners in traditional markets hit by the Gyeongnam floods can obtain a disaster confirmation certificate (재해확인서) from their local government and then apply for policy funds of up to 100 million won at 2% interest from the Small Enterprise and Market Service (소상공인시장진흥공단), and for a disaster recovery guarantee of up to 300 million won from a regional credit guarantee foundation (지역신용보증재단), with a guarantee ratio of 100% and a fixed guarantee fee of 0.5%.
Key facts
| Eligibility | Small business owners in traditional markets in the Gyeongnam region that suffered flooding or soil runoff damage from the concentrated heavy rain of August 17, 2026 |
|---|---|
| Extent of damage | Store damage from flooding and soil runoff at 4 markets in Tongyeong and 11 markets in Geoje, Gyeongnam (no casualties) |
| Policy funds | Small Enterprise and Market Service, up to 100 million won at 2% interest |
| Guarantee | Regional credit guarantee foundation, limit of up to 300 million won · guarantee ratio of 100% (raised from the 85% of ordinary guarantees) · fixed guarantee fee of 0.5% |
| Noran Usan Gongje (노란우산공제) | Affected merchants who are enrolled and have obtained a disaster confirmation certificate are planned to be supported with interest-free disaster loans of up to 20 million won |
| Application procedure | Obtain a disaster confirmation certificate from the local government → apply to the Small Enterprise and Market Service |
| One-stop support center | Operated for merchants of Seoho Market in Tongyeong. Made up of staff from the regional office of SMEs and startups, the regional center of the Small Enterprise and Market Service, the regional credit guarantee foundation and the basic local government; supports surveys of the damage and the prompt issuance of disaster confirmation certificates |
| Facility recovery | For electricity and gas facility support it normally takes about 2.5 months until project funds are disbursed, but this emergency support simplifies the procedure, with a plan to disburse the funds to local governments within 10 days |
| Enquiries | Traditional Market Division, Ministry of SMEs and Startups, 044-204-7898 |
Last checked:
On August 18, 2026, the Ministry of SMEs and Startups (중소벤처기업부) said that after record heavy rain on the 17th caused flooding and soil runoff at traditional markets in the Gyeongnam region, including Seoho Market in Tongyeong, it is operating a response system together with local governments, regional offices of SMEs and startups and the Small Enterprise and Market Service (소상공인시장진흥공단). Affected small business owners can obtain a disaster confirmation certificate (재해확인서) from their local government and then apply to the Small Enterprise and Market Service for policy funds of up to 100 million won at 2% interest, and can receive disaster recovery guarantees of up to 300 million won from a regional credit guarantee foundation (지역신용보증재단). These guarantees apply a guarantee ratio of 100%, raised from the 85% of ordinary guarantees, and a preferential fixed guarantee fee of 0.5%. Affected merchants who are enrolled in the Noran Usan Gongje mutual aid scheme (노란우산공제) and have obtained a disaster confirmation certificate are planned to be supported with interest-free disaster loans of up to 20 million won.
Background — why this change
The Ministry of SMEs and Startups said that record heavy rain on August 17, 2026 caused damage such as flooding and soil runoff at traditional markets in the Gyeongnam region, including Seoho Market in Tongyeong. Damage to stores was confirmed at 4 markets in Tongyeong and 11 markets in Geoje, and no casualties were reported. At the roughly 150 stores in Seoho Market in Tongyeong, where flood damage was found to be severe, an emergency response team made up of the Gyeongnam Regional Office of SMEs and Startups (경남지방중소벤처기업청), the Small Enterprise and Market Service and others has been deployed to support recovery work such as waste disposal and site cleanup. Enquiries: Traditional Market Division of the Ministry of SMEs and Startups (044-204-7898).
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
What do I need to do first to receive support?
Obtaining a disaster confirmation certificate from the local government comes first. After the certificate has been issued, you can apply to the Small Enterprise and Market Service for policy funds, or apply to a regional credit guarantee foundation for a guarantee needed for disaster recovery. Merchants of Seoho Market in Tongyeong are supported in obtaining disaster confirmation certificates promptly at the one-stop support center.
How much support can I receive?
Policy funds from the Small Enterprise and Market Service are up to 100 million won at 2% interest, and guarantees from a regional credit guarantee foundation have a limit of up to 300 million won. The guarantee ratio applied is 100%, raised from the 85% of ordinary guarantees, and the guarantee fee is preferential at a fixed 0.5%. Affected merchants who are enrolled in Noran Usan Gongje and have obtained a disaster confirmation certificate are planned to be able to receive interest-free disaster loans of up to 20 million won.
How long does it take to restore the electricity and gas facilities of a flooded store?
Normally, after an application for support, it takes about 2.5 months until project funds are disbursed, going through on-site and document evaluation, a deliberation and coordination committee (심의조정위원회) and other procedures, but in this emergency support the related procedures are simplified and the project funds are planned to be disbursed to local governments within 10 days. The Ministry of SMEs and Startups plans to request emergency safety inspections from bodies such as Korea Electric Power Corporation (한국전력공사), the Korea Gas Safety Corporation (한국가스안전공사) and the Korea Fire Protection Association (한국화재보험협회), and where safety is secured it supports prompt recovery.