Dobong-gu Provides Up to 20 Million KRW Interest-Free Loans Worth 20 Billion KRW to Small Business Owners

Interest-Free Loans for Small Business Owners Starting April 15... Up to 20 Million KRW Interest-Free Loans for One Year for Local Small Business Owners and Others

On March 22, the Seoul Metropolitan Council of District Mayors (from left in the photo: Auditor Jung Won-oh, Mayor of Seongdong-gu; in the center of the photo, Council Chairman Lee Dong-jin, Mayor of Dobong-gu; Secretary-General Kim Soo-young, Mayor of Yangcheon-gu) provided an explanation regarding the payment of the "City-District Cooperative Disaster Relief Fund" at the Seoul City Hall briefing room.

[Asia Economy Reporter Jongil Park] Dobong-gu (Mayor Dongjin Lee) is the first among Seoul's 25 autonomous districts to provide support to local small business owners facing financial difficulties due to the prolonged COVID-19 pandemic by implementing a 20 billion KRW scale ‘Interest-Free Loans for Small Business Owners’ program.

The ‘Interest-Free Loans for Small Business Owners’ is one of the projects promoted as a livelihood economy measure through cooperation between Seoul City and its 25 autonomous districts. Dobong-gu, through this program, collaborates with the Seoul Credit Guarantee Foundation Dobong Branch, Shinhan Bank, Woori Bank, and Hana Bank to offer interest-free loans of up to 20 million KRW for one year to small business owners in the area.

Eligible applicants who meet conditions such as having been in business for more than six months and having a credit rating of 7 or higher can receive loans from the aforementioned banks secured by a credit guarantee certificate from the Seoul Credit Guarantee Foundation. Applications are accepted from Thursday, April 15, 2021, until funds are exhausted.

For more details, inquiries can be made to the Seoul Credit Guarantee Foundation Dobong Branch, Shinhan Bank Ssangmun Station Branch and Changdong Station Branch, Woori Bank Dobong-gu Office Branch, and Hana Bank Banghak-dong Branch.

Meanwhile, small business owners in restricted or suspended business sectors who have received the ‘Small Business Owner Support Fund Plus (Government 4th Disaster Relief Fund)’ are being provided with the ‘Seoul Economic Vitality Fund’ as a livelihood economy measure through cooperation between the city and district. Starting from the 20th of this month, support will also be provided to small business owners who have closed businesses in restricted or suspended sectors located in Dobong-gu.

The ‘Support for Closed Small Business Owners in Restricted and Suspended Sectors’ targets small business owners in Dobong-gu who closed their businesses between March 22, 2020, and April 16, 2021, in restricted or suspended sectors, providing 500,000 KRW per business.

Online applications will be available on the Dobong-gu Office website from April 20 to June 30 of this year.

In-person applications can be made at the relevant department for each business sector from May 10 to June 30.

Mayor Dongjin Lee of Dobong-gu stated, “We hope that livelihood measures such as the interest-free loans for small business owners and the Seoul Economic Vitality Fund, which are cooperative efforts between Seoul City and autonomous districts, will serve as a stepping stone for small business owners who are facing significant challenges due to the prolonged COVID-19 crisis to overcome this difficult time.”