Seocho-gu, 2nd Ultra-Fast Loan to Overcome the 3rd COVID-19 Pandemic

Loans up to 20 million KRW with minimal screening for self-employed... First-come, first-served applications start from the 30th at Woori Bank and Hana Bank

[Asia Economy Reporter Park Jong-il] Seocho-gu (Mayor Cho Eun-hee) has decided to implement the '2nd COVID-19 Overcome Ultra-Speed Loan' worth 21 billion KRW through the Seoul Credit Guarantee Foundation to alleviate the financial difficulties of local self-employed business owners facing management crises due to the year-end resurgence of COVID-19.

This 2nd ultra-speed loan is funded by Seocho-gu with 1 billion KRW, and 200 million KRW each from Woori Bank and Hana Bank. Similar to the 1st loan, the existing procedures have been greatly simplified so that applicants can complete everything from application to loan disbursement in a one-stop process by simply visiting the bank.

The support target is self-employed business owners currently operating businesses located in Seocho-gu, excluding those who received support from the 1st ultra-speed loan.

Also, although the 2nd ultra-speed loan proceeds under the same conditions as the 1st, unlike the 1st loan which provided a uniform support amount of 20 million KRW, the limit per business has been reduced to within 20 million KRW considering the previously guaranteed amounts by the guarantee institution.

As the 3rd wave of COVID-19 rapidly worsened the local commercial districts, making it difficult for self-employed business owners, it was decided to promptly implement this support from the year-end to assist their operating funds. At least 1,050 businesses can receive support, with an annual interest rate of 1.06% (excluding a separate guarantee fee of 0.8%), and the repayment method is a 1-year grace period followed by 4 years of equal installment repayments.

Applications are accepted on a first-come, first-served basis starting from the 30th by visiting one of the six Woori Bank branches or seven Hana Bank branches in the area. For detailed consultations, contact the Seocho-gu call center or the respective branches of Woori Bank and Hana Bank.

Meanwhile, this year, the district supported 403 businesses with 9 billion KRW through the 1st ultra-speed loan and has actively promoted financial support through the Small and Medium Business Development Fund loans and interest subsidy support for cooperative funds with commercial banks.

Additionally, efforts and support have not been spared for self-employed business owners struggling due to COVID-19, including support for new self-employed business owners, filling blind spots for small business support, and assistance for businesses affected by visits from confirmed cases.

Seocho-gu Mayor Cho Eun-hee stated, “This loan support is a measure for self-employed business owners pushed to the edge due to the government's high-intensity social distancing measures,” and added, “We will do our best to support local small business owners in overcoming the COVID-19 crisis next year as well.”