Seoul City Executes 57% of Low-Interest Loans for Food Self-Employed... 8.7 Billion Won Received by October

Implementation of 2 Billion Won Low-Interest Loans at 1% Annual Rate for Facility Improvement Funds and COVID-19 Operating Funds

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 8th that it is promoting loan support worth 20 billion KRW through the ‘Food Promotion Fund’ to support the daily recovery of food self-employed businesses. From February to July, about 11.3 billion KRW (57%) was disbursed, and the remaining 8.7 billion KRW will be supported until the funds are exhausted.

According to Seoul City, since the loan from the Food Promotion Fund requires a selection process for recipients and processing time at financial institutions, applications must be submitted by mid-October for smooth support. Loan applications will be accepted at the food hygiene departments of 25 autonomous districts until October 21.

The loan products include ?Facility Improvement Fund ?Development Fund ?COVID-19 Emergency Operating Fund. Eligible recipients are general and casual restaurants, bakeries, consigned catering services, and model restaurants. The Facility Improvement Fund supports necessary funds for facility improvements for general and casual restaurants, bakeries, and food manufacturing businesses. The Development Fund supports funds needed for purchasing hygiene equipment or menu development for model restaurants or tourist restaurants.

All loan products from the Food Promotion Fund offer a low annual interest rate of 1.0%, and those who have received loans from the Seoul Small and Medium Business Development Fund can also apply. The repayment condition is a 2-year grace period followed by 3 years of equal installment repayments. However, for food manufacturing businesses, the repayment condition is a 3-year grace period followed by 5 years of equal installment repayments. Last year, business owners who received loans from the Small and Medium Business Development Fund were restricted from applying, but this year the restriction has been eased to allow loans.

Loan applications can be made at the food hygiene department of the district where the business is located, and after screening by the district and Seoul City, if confirmed as a recipient, the loan will be finally processed by applying credit management regulations at Woori Bank, Hana Bank, and IBK Industrial Bank, which are the Food Promotion Fund handling banks.

Park Yumi, Director of the Seoul Metropolitan Government’s Citizen Health Bureau, said, “We hope the remaining 8.7 billion KRW will be disbursed quickly to help more recipients,” and added, “Seoul City will continuously monitor the loan disbursement status and do its best to ensure all loan funds are disbursed.”