Naver Pay (Npay) will jointly contribute 600 million won with Jeju Bank to provide a total of 7.5 billion won in special guarantees for small merchants in Jeju. It plans to support guarantees of up to 50 million won per business and to provide non-financial support in parallel, including distributing offline payment terminals and offering digital education.

Naver Pay said on Oct. 16 it signed a memorandum of understanding on Oct. 15 with Jeju Special Self-Governing Province, Jeju Bank and the Jeju Credit Guarantee Foundation to improve financial access and the digital business environment for small merchants in Jeju.

Under the agreement, Naver Pay and Jeju Bank will make a special contribution totaling 600 million won to the Jeju Credit Guarantee Foundation. The foundation plans to use the funds to provide credit guarantees totaling 7.5 billion won through the "Jeju Small Merchant Hope ON Special Guarantee" programme.

The special guarantee will be offered on terms of up to 50 million won per business, a guarantee period of up to 6 years and a guarantee ratio of 95 percent. Based on the foundation's guarantee certificates, Jeju Bank will provide guaranteed loans to small merchants using Jeju Bank and "Npay Connect".

It will also be linked to Jeju’s interest subsidy support programme. Small merchants meeting the requirements can also receive benefits that reduce their interest burden in addition to guaranteed loans.

Along with financial support, the plan will also 추진 to improve the digital payment environment at small-merchant stores. Naver Pay plans to expand payment infrastructure around the Npay Connect offline integrated terminal and to expand, for small and medium-sized merchants, its Npay Money and Point on-site payment fee refund programme running through year-end.

It will also provide an education programme explaining Npay Connect’s review, coupon and kiosk functions and how to use Naver Smart Place. It also plans to support Jeju small merchants’ participation in major exhibitions such as the "Seoul Cafe Show" and cooperate on opening sales channels.

Park Sang-jin (박상진), head of Naver Pay, said, "Based on financial support and Naver Pay’s services and technology, we will support the growth of regional small merchants."