Dongdaemun-gu Provides Emergency Loans (10 Million KRW) to Small Businesses with Low Credit Ratings

Loan up to 10 million KRW per business, interest support for 1 year... Applications open from the 27th

[Asia Economy Reporter Jong-il Park] Dongdaemun-gu (Mayor Yu Deok-yeol) is providing small interest-free loans to local small business owners who are struggling due to COVID-19 damage but have low credit ratings, making it difficult to obtain loans.

The district announced that, in cooperation with Woori Bank and the Seoul Credit Guarantee Foundation, it will support credit loans with no interest for one year (1.5% interest per year after one year) up to 10 million KRW for small business owners with low credit ratings who find it difficult to get loans.

To this end, following the emergency loans for small business owners conducted in May, which supported 42 billion KRW to 420 companies, an additional 4 billion KRW will be invested to support loans for small business owners with low credit ratings.

The district plans to invest a total of 11.2 billion KRW in small and medium enterprise funds to support small business owners and self-employed individuals facing management difficulties through this year.

The support targets are small business owners with business addresses in Dongdaemun-gu (fewer than 5 regular employees, fewer than 10 employees in mining, manufacturing, construction, and transportation industries) who meet one of the following conditions: ▲credit rating 6 to 8 ▲low-income class ▲simplified taxpayer ▲multicultural or multi-child households. The sales criteria are less than 200 million KRW for businesses operating for more than one year and less than 100 million KRW for those operating between six months and one year.

Companies currently receiving Dongdaemun-gu small business development funds or emergency loan support, as well as those in finance and insurance, real estate (excluding brokerage), lodging and bars, restaurants with exclusive areas over 330㎡, dance halls, golf practice ranges, precious metals and game centers, luxury, entertainment, and gambling industries are excluded from support.

The application period is from July 27 until the funds (4 billion KRW) are exhausted. Small business owners wishing to apply for loans should visit the Woori Bank Dongdaemun-gu Office branch to check their credit rating and prepare the following documents: ▲loan application ▲copy of business registration certificate ▲copy of business lease contract ▲small business confirmation ▲value-added tax standard certificate, national and local tax payment certificates, and income amount certificate ▲Woori Bank credit rating confirmation or low-income class confirmation or family relation certificate. Applicants should then visit and submit these documents to the Small Business Support Team on the second basement floor of Dongdaemun-gu Office. For more details, contact the Economic Promotion Division of Dongdaemun-gu Office.

Yu Deok-yeol, Mayor of Dongdaemun-gu, said, “We plan to prioritize providing loans and interest support for one year mainly to small business owners with low credit ratings who are severely affected economically by COVID-19 and have difficulty obtaining loans.” He added, “We will continue to provide various support measures to revitalize the local economy through active support centered on self-employed individuals and small business owners.”