Yongsan-gu Provides 7 Billion Won Loan Support for Small and Youth Enterprises

50 Billion KRW SME Development Fund Loans to Support SMEs, Small Businesses, and Youth Enterprises Struggling Due to COVID-19... Applications Accepted in March and August... Youth Enterprise Loans Available Year-Round Until 2 Billion KRW Fund Exhausted

[Asia Economy Reporter Jongil Park] Yongsan-gu (Mayor Seongjanghyun) will support loans for small and medium-sized enterprises (SMEs) and youth businesses with a budget of 7 billion KRW this year.

SME loans will be provided with 2.5 billion KRW each in the first and second half, totaling 5 billion KRW.

The target recipients are SMEs and small business owners registered in Yongsan-gu. Financial, insurance, lodging, pubs, precious metals, restaurants over 330㎡ in size, gambling, luxury, entertainment, and speculative businesses are excluded.

◇ SME Loans Worth 5 Billion KRW

The loan limit is 150 million KRW for SMEs and 50 million KRW for small business owners, and the funds can be used for business operations, technology development, and facility expenses.

The interest rate is 1.5% per annum but has been lowered to 0.8% until the end of the year. The repayment terms are a 2-year grace period followed by 3 years of equal installments. Collateral capability according to bank credit regulations is required.

Applicants can visit the Shinhan Bank Yongsan-gu Office Branch (one-stop window) with the fund loan application form, business plan, business registration certificate or proof of business registration, financial statements for the past three years, or VAT taxable standard confirmation during March 2?31 (first half) and August 2?31 (second half).

Related forms are posted on the district website under the announcements/notices section.

Afterward, the district will select support recipients through on-site inspections of applicants and review by the loan review committee.

Loan eligibility notifications will be individually sent on May 3 (first half) and October 4 (second half).

◇ Youth Business Loans Worth 2 Billion KRW

Youth business loans total 2 billion KRW. The interest rate is 0.8% per annum (temporarily reduced in 2021), with a 1-year grace period and 4 years of equal installment repayments. Loans up to 100 million KRW (50 million KRW for small business owners) are available. Funds can be used for business stabilization, facility expenses, and lease deposits.

Eligible applicants are youth aged 39 or younger who have been residing in Yongsan for at least one year as of the loan application date and are operating businesses within the district (SMEs and small business owners). General entertainment restaurants, dance entertainment restaurants, and other speculative facility management and operation businesses are excluded.

Applicants can visit the Shinhan Bank Yongsan-gu Office Branch (one-stop window) with the job fund loan application form, business plan, resident registration abstract, financial statements, or VAT taxable standard confirmation. Applications are accepted year-round until funds are exhausted.

Related forms are posted on the district website under district news (Yongsan-gu Job Fund).

The district holds a fund management review committee around the 20th of each month to select loan recipients. Loans are disbursed around the 30th of the following month from the application date.

Mayor Seongjanghyun of Yongsan-gu said, “Small and medium-sized enterprises, small business owners, and youth businesses are facing great difficulties due to the spread of the novel coronavirus infection (COVID-19). We will help them overcome the crisis through loans totaling 7 billion KRW.”

In addition to loan support, the district plans to assist local small and medium-sized businesses by operating a customized bidding information system and a knowledge learning center for merchants, early execution of finances, and extending deadlines and deferring collection of local taxes for small business owners affected by COVID-19, using all available methods.