Gwangjin-gu Provides Loan Support Up to 200 Million Won for Small and Medium Enterprises

[Seoul District News] Gwangjin-gu Provides High-Amount Loans of 30 Million to 200 Million KRW per Company
& 1.5% Annual Fixed Interest, 1-Year Grace Period, 3-Year Equal Repayment... Gangseo-gu Offers Free Business Consulting for Small Merchants in Gangseo Meokja Alley with Seoul Credit Guarantee Foundation... Dobong-gu Establishes and Implements 'Carbon Neutral Urban Environment Plan'

[Asia Economy Reporter Park Jong-il] Gwangjin-gu (District Mayor Kim Kyung-ho ·photo) is implementing the ‘2022 Second Half Small and Medium Enterprise Development Fund Loan Support’ to alleviate financial difficulties faced by small and medium-sized enterprises (SMEs) and small business owners struggling with high inflation and high interest rates.

The district has raised the loan limit from 20 million to 100 million KRW per company to between 30 million and a maximum of 200 million KRW to meet the demand for large operating funds. The total loan scale is 1.97 billion KRW.

The support targets SMEs and small business owners located in Gwangjin-gu who have collateral capacity (real estate, credit guarantee certificates) according to bank credit regulations. However, companies currently repaying loans from the SME Development Fund are excluded.

Additionally, the interest rate, which was temporarily lowered after the outbreak of COVID-19, will be extended and applied at a fixed rate of 1.5% per annum, with a one-year grace period followed by three years of equal installment repayments.

Companies wishing to apply for loans should visit the Kookmin Bank Gwangjin-gu Office branch, undergo a preliminary review of loan limits and collateral, and then submit the loan application form and business plan along with required documents either in person or by mail to the district office’s Regional Economy Division.

For more details, refer to the notice section on the district office website or contact the Gwangjin-gu Regional Economy Division.

Prior to this, the district is also implementing a ‘Gwangjin-type Interest-Free and Guarantee-Free (2 years) Special Guarantee Loan Support’ totaling 45.4 billion KRW this year, separate from the SME Development Fund.

The limit is up to 30 million KRW per company, and as of the end of July, 13 billion KRW remains available.

Kim Kyung-ho, Mayor of Gwangjin-gu, said, “In the situation where COVID-19 is resurging and interest rates are rising, small and medium enterprises and small business owners are facing many difficulties in financing. I hope the Gwangjin-gu SME Development Fund loan support will help alleviate their financial difficulties even a little.”

Gangseo-gu, Seoul (District Mayor Kim Tae-woo) has taken steps to support local small business owners struggling with management difficulties.

The district announced that it will provide free management consulting for small business owners in the Gangseo Food Alley in partnership with the Seoul Credit Guarantee Foundation.

This is intended to help stabilize the management activities and strengthen the competitiveness of small business owners in Gangseo Food Alley who are suffering from the resurgence of COVID-19 and the decline of commercial districts.

For this support, the district secured a budget of 15 million KRW and signed a business agreement with the Seoul Credit Guarantee Foundation, which has know-how and infrastructure for supporting small business owners.

The consulting involves the Seoul Credit Guarantee Foundation Gangseo branch visiting business sites directly to conduct preliminary diagnostics, identify management difficulties, and diagnose problems.

Based on this, experts provide prescriptions for problem-solving such as marketing using SNS, utilizing delivery platforms, and business type conversion.

Applicants must be small business owners registered within Gangseo Food Alley, with support available for the first 30 applicants on a first-come, first-served basis. However, some industries such as entertainment bars and luxury clothing retail stores are restricted.

Applications can be made by pre-registering via phone with the Seoul Credit Guarantee Foundation and then submitting a copy of the business registration certificate through the ‘Seoul Self-Employment Support Center website (homepage) - Business Guide - Self-Employment Clinic.’

A district official said, “We hope this consulting will help stabilize the management of small business owners who have been struggling due to the prolonged COVID-19 pandemic and aid in the recovery of the local commercial district. We will continue to discover projects that can provide practical help to small business owners.”

For more information, contact the Gangseo-gu Regional Economy Division or the Seoul Credit Guarantee Foundation Gangseo branch.

Dobong-gu (District Mayor Oh Eun-seok) has established and begun implementing the ‘Carbon Neutral Urban Environment Creation Plan (2022?2026)’ this month as a pledge of the 8th local government term to realize carbon neutrality by 2050 and respond swiftly to the climate crisis.

Dobong-gu is a recognized leading carbon-neutral local government, being the only domestic city to receive an ‘A’ grade in the 2021 Carbon Disclosure Project (CDP).

With the start of the 8th local government term, the district is actively promoting five major projects under the vision ‘Together! Change, Growth, Future Carbon Neutral City, Dobong,’ including ▲reducing greenhouse gases by 116,000 tons ▲enrolling 50,000 members in the Carbon Zero Mileage program ▲training 5,000 Dobong Zero-Cs ▲engaging 60,000 participants in the ‘Greenhouse Gas Reduction Pledge of 4 Tons per Person’ campaign ▲and consolidating related ordinances and establishing institutional and policy foundations.

First, based on the ‘Dobong-gu Climate Change Response Plan’ established through research in June this year, 40 projects across seven sectors will be promoted to reduce 116,529 tons of greenhouse gases by 2026. By sector, reductions include ▲buildings 49,988 tons ▲transportation 18,168 tons ▲energy 3,759 tons ▲waste 4,210 tons ▲carbon sinks (forests) 250 tons ▲and lifestyle and education 40,154 tons.

Second, to raise residents’ awareness of carbon neutrality and encourage voluntary action, the district has newly established and operates the ‘Dobong-gu Carbon Zero Mileage’ program, which provides mileage and incentives for greenhouse gas reduction activities in all fields. The goal is to enroll 50,000 members by 2026.

Third, aiming to train 500 to 1,000 people annually and 5,000 by 2026 as ‘Dobong Zero-Cs,’ the district will lead residents to reduce greenhouse gases in daily life. Additionally, through the expansion of the ‘Dobong Residents’ Greenhouse Gas Reduction Pledge of 4 Tons per Person’ campaign, the district plans to have 10,000 participants annually and 60,000 by 2026. To support this, the district provides the ‘Dobong Residents’ Carbon Neutral Practice Manual,’ which anyone can easily follow in daily life.

Fourth, with the enactment of the ‘Basic Act on Carbon Neutral Green Growth for Climate Crisis Response,’ related ordinances such as the ‘Dobong-gu Carbon Neutral Basic Ordinance’ will be fully revised, consolidated, and maintained. Based on government and Seoul city plans and considering Dobong’s regional characteristics, the district will establish the ‘Dobong-gu Regional Energy Plan’ and the ‘Dobong-gu Carbon Neutral Green Growth Basic Plan’ to create institutional and policy foundations supporting carbon neutrality realization.

Oh Eun-seok, Mayor of Dobong-gu, said, “We will strengthen adaptation measures to prevent the severe impacts of the climate crisis and enhance the safety and happiness of residents through the creation of a carbon-neutral urban environment.”