Seoul Gangseo-gu Provides 20 Billion Won Interest-Free Loans for Small Businesses and Small Merchants

Up to 20 million KRW loan per company, full interest support for 1 year... Apply at 9 affiliated bank branches in the region until funds are exhausted

[Asia Economy Reporter Park Jong-il] Gangseo-gu, Seoul (District Mayor Noh Hyun-song) is stepping up to support small businesses and small merchants facing difficulties.

The district is providing interest-free loans worth 20 billion KRW to small businesses and small merchants severely affected by the prolonged COVID-19 pandemic.

The purpose is to alleviate the financial difficulties of small and medium-sized enterprises and small merchants in management crisis and to revitalize the local economy.

Interest-free loans of up to 20 million KRW per business will be supported for one year.

The support target is small businesses and small merchants registered in Gangseo-gu who have been operating for more than six months and have a personal credit score of 595 points (formerly grade 7) or higher. However, businesses subject to credit guarantee foundation re-guarantee restrictions, small merchants who have received guarantees from the Seoul Credit Guarantee Foundation since January 1, 2021, and still have guarantee balances, and small merchants with existing credit guarantee amounts of 100 million KRW or more are excluded from support.

The loan limit is up to 20 million KRW, with a loan period of 5 years, including a 1-year grace period and 4 years of equal installment repayments. Interest will be fully supported for one year, and from the second year, a variable interest rate will apply.

Businesses and small merchants wishing to apply can visit any of the nine affiliated bank branches in the region until funds are exhausted.

For more details, please check the ‘Gangseo-gu Office website - News Plaza - Notices/News’.

A district official said, “We hope that the interest-free loan support will be a practical help to small merchants going through difficult times,” and added, “We will continue to provide thorough support to revive the local economy.”

To support interest-free loans for small businesses and small merchants, the district has provided a total of 1.6 billion KRW in guarantee funds to the Seoul Credit Guarantee Foundation through agreements, including 900 million KRW from Gangseo-gu, 500 million KRW from Woori Bank, and 200 million KRW from Hana Bank.