Seongdong-gu Provides 100 Million Won Interest-Free Loans to Over 400 Social Economy Enterprises

Relief for Companies on Demand Loan Burden, Loans Can Be Applied According to Each Company's Funding Needs

Seongdong-gu Seongsu-dong Panorama

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Won-oh) will provide interest-free loans for one year starting this month to about 400 social economy enterprises in the area struggling due to the prolonged COVID-19 pandemic.

The loan support targets approximately 400 companies including local (preliminary) social enterprises, social venture companies, (social) cooperatives, and village enterprises, with a loan limit of up to 100 million KRW per company.

The district prepared a plan to foster and develop social economy organizations, establishing a social economy revitalization fund operation plan in March and building a support system to overcome COVID-19.

Accordingly, the district allocated 15.4 million KRW for interest subsidy to reduce the interest burden on social economy organizations, temporarily supporting the existing 2% repayment interest, and providing companies with interest-free loans for one year.

Additionally, loans can be made at any time without a designated period, easing the burden on companies and allowing them to apply for loans for their desired period according to their individual funding needs.

Last month, ‘Nongol Credit Cooperative’ was selected as the private executing agency to operate the social economy revitalization fund. The agency will proceed with loans totaling 600 million KRW by adding its own capital of 300 million KRW to the 300 million KRW supported by the district.

Companies wishing to apply can consult by phone through the executing agency and then visit to individually decide on the repayment period and other details.

Until last year, the district supported loans totaling 963 million KRW to 19 companies to promote their growth. This year, it plans to continuously discover social economy enterprises with high growth potential but marginalized in the financial market and support their independence.

Jeong Won-oh, Mayor of Seongdong-gu, said, “Through this interest-free loan support, we hope social economy enterprises can reduce their interest burden and overcome the COVID-19 crisis. We will continue to prepare support that helps stabilize management and strengthen competitiveness of social economy enterprises.”