Geumcheon-gu to Promote 20 Billion KRW Small Business Loans... Unsecured and Interest-Free for 1 Year

Starting June 21, Applications Accepted at Designated Branches of Woori, Shinhan, and Hana Banks... Additional Loans Available for Existing Geumcheon-type Small Business Special Credit Guarantee Loan Beneficiaries

[Asia Economy Reporter Park Jong-il] Geumcheon-gu (Mayor Yu Seong-hoon) is promoting an additional loan project worth 20 billion KRW to alleviate the financial difficulties of small business owners and self-employed individuals struggling due to the prolonged COVID-19 pandemic.

On June 18, the district signed a business agreement with Seoul Credit Guarantee Foundation, Woori Bank, Shinhan Bank, and Hana Bank, and from June 21 until funds are exhausted, the ‘Small Business Owner Interest-Free Loan’ support project will be implemented at designated branches of each bank.

The support targets are ▲small business owners located in Geumcheon-gu who have been operating for more than 3 months ▲with loans up to 20 million KRW per business ▲with a 1-year grace period and 4-year equal installment repayment conditions.

The loan is interest-free for the first year from the loan date, and from the 2nd to 5th year, the Seoul Metropolitan Government will provide interest subsidy support at an annual rate of 0.8%.

Small business owners wishing to apply for the loan can visit the designated branches of the contracted banks, and those who have previously received the Geumcheon-type special credit guarantee loan can also apply for additional loans.

Meanwhile, last year, the district was the first autonomous district to support a special credit guarantee loan for small business owners in Geumcheon-gu, allowing interest-free (1 year) and unsecured loans worth 60 billion KRW.

Yu Seong-hoon, Mayor of Geumcheon-gu, said, “It is expected that up to about 1,000 small business owners will be able to receive loans under better conditions than the existing Geumcheon-type special credit guarantee loan,” and added, “We hope that the financial difficulties of small business owners who have suffered long-term damage from COVID-19 will be resolved and that this will open up the alley economy.”

For detailed information such as the locations of designated branches of each bank, inquiries can be made to the Geumcheon-gu Alley Economy Support Center.