Expansion of Online Service for Direct Loans of 10 Million Won to Small Business Owners

Starting as early as this week,
customers can upload loan application documents through the app

Main screen of the 'COVID-19 Online Application' on the Small Enterprise and Market Service website.

[Asia Economy Reporter Moon Hyewon] The Small Enterprise and Market Service (SEMAS) will expand its online service for direct loans of 10 million KRW to small business owners as early as this week. In addition to the existing online pre-reservation and certificate issuance services, the system will be improved to allow customers to upload the documents required for loan applications directly.

According to SEMAS on the 14th, the 'COVID-19 Online Application' service section has been set up on the website since last week and is currently undergoing internal testing. It can be accessed via the internet and mobile devices. SEMAS expects that once this service officially opens, it will not only enhance convenience for small business owners but also reduce the workload of local Small Business Support Centers.

SEMAS plans to open the COVID-19 Online Application service as early as this week. However, due to a shortage of IT personnel and the need to establish security systems, the opening may be delayed. Additionally, even after the COVID-19 Online Application service is implemented, small business owners will still need to visit the Small Business Support Centers to sign the loan agreement.

The direct loan of 10 million KRW for small business owners has been available only to those with a credit rating of 4 or lower since the 25th of last month. The government has prepared and is providing 2.7 trillion KRW in policy funds for SEMAS direct loans, but due to high demand, the funds are being depleted rapidly.

According to the Ministry of SMEs and Startups and others, out of the allocated budget of 2.7 trillion KRW, 1.7 trillion KRW has already been used. Considering the current loan disbursement speed, there are concerns that the budget could be exhausted as early as the end of this month.

A SEMAS official stated, "Since the budget for the 10 million KRW direct loan for small business owners is limited, each regional center is currently restricting the number of daily applicants based on their own judgment," adding, "The COVID-19 Online Application service will also limit the number of daily applicants to prevent a sudden surge in applications from small business owners."