Helping Small Business Owners Restart... Songpa-gu Provides 15.6 Billion KRW Loan Support

[Seoul District News] Songpa-gu Supports Small Businesses with Up to 50 Million KRW Unsecured Credit Guarantee Loans through Collaboration with Woori Bank and Shinhan Bank
Maximum Loan per Business Up to 50 Million KRW

[Asia Economy Reporter Jong-il Park] Songpa-gu (District Mayor Seogang Seok ·photo) is launching a loan support program worth 15.6 billion KRW to help small business owners facing management crises amid soaring prices.

This loan support is implemented through a business agreement between Songpa-gu, Woori Bank, Shinhan Bank, and the Seoul Credit Guarantee Foundation, with a total contribution of 1.3 billion KRW. With a guarantee scale of 15.6 billion KRW, unsecured credit guarantee loans are available.

Small business owners can receive credit guarantee loans up to 50 million KRW per business. Considering the recent crisis aggravated by high interest rates and the soaring KRW-USD exchange rate, the district increased the maximum support amount per business from 20 million KRW last year to 2.5 times that amount.

The support target is small business owners who have registered their business in Songpa-gu and have been operating for more than three months with a NICE personal credit score of 595 points (credit grade 7) or higher.

The loan limit is applied differentially according to the personal credit score. The guarantee ratio is 100%, and the guarantee fee rate (credit guarantee commission rate) is 0.8% per annum.

Applications are accepted from October 4 until funds are exhausted. After consultation at the Seoul Credit Guarantee Foundation, applicants must visit designated branches of Woori Bank or Shinhan Bank in person to apply.

Detailed information such as required documents and application locations can be found on the Songpa-gu Office website (Information by category → Small Business Support → Corporate Support System).

Seogang Seok, Mayor of Songpa-gu, said, “I hope this loan support will be a practical help to small business owners suffering from the double hardship of COVID-19 and soaring prices,” and added, “We will continue to strive to discover various support projects so that small business owners in management crises can regain vitality.”