Seeking Breakthrough Amid Economic Recession and COVID-19... Mapo-gu Supports Loans for Small and Medium-Sized Businesses

30 Billion KRW Small Business Development Fund at 1.5% Interest Rate, Up to 200 Million KRW Support... Special Credit Guarantee 19.1 Billion KRW, 2.0?2.33% Interest Rate, Up to 50 Million KRW Support

[Asia Economy Reporter Jongil Park] Mapo-gu (Mayor Yudonggyun) is recently providing loan support to help small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling due to the economic downturn and COVID-19.

The district plans to support a total of 22.1 billion KRW this year, including 3 billion KRW from the SME Development Fund and 19.1 billion KRW from special credit guarantees. This amount is about 2.7 times higher than last year's 8 billion KRW.

In particular, in the current situation where the local economy is shrinking due to COVID-19, the district intends to actively identify and support SMEs and small business owners who may face financial difficulties.

The SME Development Fund support targets include ▲ SMEs registered as factories ▲ small enterprises engaged in manufacturing ▲ those engaged in manufacturing-related knowledge service industries ▲ those engaged in tourism-related businesses, international logistics brokerage, freight transportation, etc., and require collateral ability (real estate or credit guarantee).

The SME Development Fund is provided at a fixed interest rate of 1.5% with a repayment condition of 2 years grace period and 3 years equal installment repayment, supporting up to 200 million KRW per company.

Companies without collateral ability can receive support through the “Special Credit Guarantee” system recommended by the district mayor and guaranteed by the Seoul Credit Guarantee Foundation.

The Special Credit Guarantee offers support up to 50 million KRW per company at a variable interest rate of 2.0?2.33%, with a repayment condition of 1 year grace period and 4 years equal installment repayment.

To increase the execution rate of fund support, prior consultations regarding loan amounts and timing are conducted through Woori Bank Mapo-gu Office Branch and Seoul Credit Guarantee Foundation Mapo Branch.

Companies wishing to apply for the SME Development Fund can contact Woori Bank Mapo-gu Office Branch (☎324-2274, extension 311), and for Special Credit Guarantee support, contact Seoul Credit Guarantee Foundation Mapo Branch (☎1577-6119) for prior phone consultation, then inquire at Mapo-gu Regional Economy Division (☎3153-8573).

Mayor Yudonggyun of Mapo-gu said, “We will actively support the management stability of small and medium enterprises through low-interest fund support,” and added, “We will continue to seek ways to support SMEs and small business owners in the region during these difficult times.”