Dongdaemun-gu, Loan Support for Small Business Owners and SMEs

An Additional 2 Billion KRW Allocated for the SME Development Fund... Interest Rate Reduced to 1.5% per Annum

[Asia Economy Reporter Jong-il Park] Dongdaemun-gu (Mayor Yoo Deok-yeol) is expanding loan support for emergency funds to local small and medium-sized enterprises (SMEs) and small business owners who are struggling with operations due to the prolonged COVID-19 pandemic.

To this end, the district will inject an additional 2 billion KRW from the SME Development Fund on top of the existing 6 billion KRW allocated for emergency fund loans (3.5 billion KRW from the SME Development Fund and 2.5 billion KRW from Woori Bank cooperative funds).

The loan interest rate will be lowered from the existing 2.0% per annum to 1.5%, and the principal repayment deadline will be deferred for one year to reduce the financial burden on SMEs and small business owners who receive loans. However, for companies or small business owners who have already received loans, the reduced interest rate (1.5% per annum) will apply from the interest payment due after Wednesday, April 1.

The maximum loan amount remains the same at up to 200 million KRW per business.

The loan targets are SMEs and small business owners with business addresses in Dongdaemun-gu. However, financial and insurance industries, real estate, lodging, pubs, restaurants with exclusive areas over 330㎡, dance halls, golf practice ranges, jewelry stores, game rooms, and luxury, entertainment, and gambling industries are excluded.

SMEs and small business owners wishing to apply for loans should prepare △loan application form △copy of business lease contract △financial statements for the past three years or value-added tax standard certificates △business registration certificate and other supporting documents, and visit and submit them to the Economic Promotion Division on the 6th floor of Dongdaemun-gu Office. Related forms can be downloaded from the Dongdaemun-gu Office website (www.ddm.go.kr) under ‘Life Information → Local Economy → SME Support Application.’

For inquiries, contact the Economic Promotion Division of Dongdaemun-gu Office.

Mayor Yoo Deok-yeol of Dongdaemun-gu stated, “We have allocated additional emergency funds to support more local businesspeople who are struggling with operations,” and added, “We will spare no support until COVID-19 ends so that the local economy can revive.”