Dobong-gu Supports Small Business Owners and Low-Income Residents with 'Interest-Free Loans'

‘Jungso Gieop Yukseong Gigeum’ Loan Interest Rate Reduced by 1.8%~0%... Support Up to 200 Million KRW per Company... ‘Saenghwal Anjeong Jageum’ Loan Interest Rate Reduced by 2%~0%... Support Up to 30 Million KRW per Household

[Asia Economy Reporter Park Jong-il] Dobong-gu will provide interest-free loans starting April 1 to support local small and medium-sized enterprises (SMEs), small business owners, and low-income residents who are facing difficulties in business management and livelihood due to COVID-19.

As the COVID-19 situation prolongs, the district will temporarily reduce the loan interest rates to 0% from April 1 to December 31, 2020, for existing beneficiaries of the ‘SME Development Fund (interest rate 1.8%)’ and ‘Living Stabilization Fund (interest rate 2%)’ to revitalize the local economy and household finances.

The ‘Interest-Free SME Development Fund and Living Stabilization Fund’ support targets are ▲new loan applicants in 2020 and ▲companies and individuals who have existing loan balances remaining from previous loans. To ensure fairness with companies that have already received loan support, those with outstanding loan balances will also be eligible.

The application period for interest-free SME Development Fund loans is open year-round and may end early if the fund is exhausted.

Eligible applicants are SMEs and small business owners located in Dobong-gu who can apply for loans with real estate or credit collateral. Applications must be made by visiting the Dobong-gu Job and Economy Division after prior consultation at the district’s designated banks (Woori Bank Dobong-gu Office Branch, Woori Bank Changdong Branch, Industrial Bank of Korea Banghak-dong Branch). Final selection and loan approval will be made through district review.

Each company can receive a loan of up to 200 million KRW.

The application period for interest-free Living Stabilization Fund loans is from April 13 to May 1.

Eligible applicants are Dobong-gu residents who pay annual property tax of 200,000 KRW or less and whose monthly average household income is below the urban worker standard (6,087,747 KRW for a four-person household). Applicants must have regular income and a credit rating of grade 5 or higher. After applying at Woori Bank Dobong-gu Office Branch, applicants must undergo a loan repayment ability assessment and pass the review of the Living Stabilization Fund Loan Selection Committee.

The maximum support amount is 30 million KRW per household. Loan funds can be used for ▲small-scale manufacturing and service businesses or equivalent commercial activities ▲jeonse or monthly rent deposits ▲tuition for students in high school or above (direct descendants) ▲living expenses for disaster victims.

For more details, contact the Dobong-gu Job and Economy Division.

A district official stated, “We will actively support various measures so that residents do not lose hope and can overcome these difficult times together amid the prolonged COVID-19 crisis.”