Seongdong-gu Provides Up to 20 Million Won Loan Support for Small Business Owners

From the 3rd, up to 20 million KRW loan per business for all small business owners, 1-year interest-free, unsecured loan support

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Won-oh) will provide a 20 billion KRW scale "1-year interest-free loan" starting from the 3rd of this month to support small businesses and small merchants in the area facing crisis due to the prolonged COVID-19 pandemic.

This support targets all small merchants within the region.

It was promoted following an active proposal by Seongdong-gu Mayor Jeong Won-oh at the Seoul City District Mayors' Council in March, enabling simplified screening and collateral-free loan support for small merchants.

With a total scale of 20 billion KRW, more than 1,000 small merchants urgently needing business stabilization and emergency funds can receive support. Seongdong-gu contributes 900 million KRW, Shinhan Bank 500 million KRW, and Woori Bank 200 million KRW to the Seoul Credit Guarantee Foundation, allowing loans up to 20 million KRW interest-free for one year. After one year of interest support, the interest rate will be paid at commercial bank rates, with repayment conditions of a 1-year grace period followed by 4 years of equal installments.

Eligible applicants are small merchants and small businesses with business registration in Seongdong-gu, those who have not received guarantees from the Credit Guarantee Foundation this year (excluding term extensions), businesses operating for more than 6 months, and those meeting credit rating conditions of grades 1 to 7 (personal credit score of 595 or higher). They can obtain loans from Shinhan and Woori Banks using the Seoul Credit Guarantee Foundation's credit guarantee certificate as collateral, and applications are accepted until the 20 billion KRW fund is exhausted.

The district quickly initiated disaster relief fund support from the 5th of last month, providing disaster relief funds worth 32 billion KRW to about 36,000 COVID-19 affected individuals, completing 1.49 billion KRW in support within ten days.

In particular, approximately 6,400 essential workers under the Seongdong model received 100 masks each, and 136 locations including goshiwons (small lodging houses), child care facilities, wedding halls, and funeral homes were provided with either 500,000 KRW or equivalent value in quarantine supplies, carefully covering other facilities in blind spots of support.

Additionally, public facility instructors (149 people), home care agencies (41 locations), vocational rehabilitation facilities for the disabled (11 locations), and disabled workers at vocational rehabilitation facilities (16 people) each received 500,000 KRW to provide practical assistance.

Seongdong-gu Mayor Jeong Won-oh said, "This 1-year interest-free loan support was prepared for small merchants who have suffered the most from the COVID-19 pandemic lasting over a year," and added, "We will continue to do our best to revive the local economy and be a reliable support for small merchants."