Seongbuk-gu Provides Funding and Space to Social Economy Enterprises Struggling Due to COVID-19

Operation of Nationwide Lowest Interest Rate 0.75% Social Investment Fund Loan Project... Fostering Social Economy through Provision of Coworking Spaces

[Asia Economy Reporter Jongil Park] Seongbuk-gu (Mayor Lee Seung-ro) plans to operate financial burden relief measures such as lowering the interest rate on social investment fund loans and applying principal and interest repayment deferrals for social economy enterprises, including social enterprises and cooperatives, struggling due to the spread of COVID-19.

The district plans to reduce the interest rate on social investment fund loans from the existing 1.5% to the lowest nationwide rate of 0.75% starting in April 2020 (a 0.75% reduction from the previous rate).

Along with this, a policy to defer principal and interest repayments for six months will be implemented for existing loan-supported companies that apply.

Additionally, the district announced that part of the space within the Village and Social Economy Center in Jongam-dong will be newly reorganized and operated as a 'coworking space.' This space will be used to help social economy prospective entrepreneurs, whose financial situations have been difficult due to COVID-19, prepare for startups and corporate establishment.

Existing social economy enterprises residing there will also be able to receive support such as networking and consulting for prospective entrepreneurs.

The coworking space will recruit resident companies in April 2020, selecting a total of four companies (organizations) to provide growth opportunities without rent.

More detailed information can be found later through the recruitment announcement on the Seongbuk-gu website.

Mayor Lee Seung-ro said, “I hope that lowering the social investment fund interest rate and deferring repayments will reduce the debt repayment burden on social economy sector companies facing difficulties so they can focus on management. I also believe that the coworking space will become a hub for growth and communication for social economy-related companies. We will strive to overcome difficulties together with local social economy enterprises in this economically depressed time due to COVID-19.”