Mapo-gu to Invest 100 Billion Won Over 4 Years for Small Businesses and Small Merchants

Special Financial Support Guarantee for Small Businesses and Small Merchants through Business Agreement among Mapo-gu, Woori Bank, and Seoul Credit Guarantee Foundation

Mapo-gu and Woori Bank to contribute a total of 8 billion KRW over 4 years, supporting 25 billion KRW annually and 100 billion KRW over 4 years

Small businesses and small merchants located in Mapo-gu can use up to 50 million KRW unsecured for 5 years

[Asia Economy Reporter Park Jong-il] The small business sector is facing a severe economic downturn.

Following three consecutive years of the COVID-19 crisis, recent inflation and rising loan interest rates have made the business environment for small businesses and small merchants worse than ever.

Mapo-gu (Mayor Park Gang-su) has rolled up its sleeves to alleviate the hardships of financially vulnerable groups such as small businesses and small merchants in the region amid the deepening economic recession and to provide a stepping stone for recovery.

On the morning of the 19th, at the Mapo-gu Office's main conference room, Mapo-gu announced that it signed a business agreement with Woori Bank (President Lee Won-duk) and Seoul Credit Guarantee Foundation (Chairman Joo Cheol-su) to provide a special financial support guarantee for small businesses and small merchants in Mapo-gu.

Through this agreement, Mapo-gu and Woori Bank will each contribute 1 billion KRW annually, securing a total of 8 billion KRW over 4 years as funds for the special financial support guarantee. The guarantee limit will be 12.5 times the contribution amount, amounting to 25 billion KRW annually, with a total of 100 billion KRW supported over 4 years.

The support targets small businesses and small merchants whose business locations are in Mapo-gu, allowing each company to use up to 50 million KRW in operating funds unsecured for 5 years.

The loan interest rate ranges from 3.68% to 3.88% (3-month CD variable rate, as of January 12, 2023), with a 1-year grace period followed by equal principal repayments over a maximum of 4 years.

For prompt and efficient fund support, loan applications will be accepted through the Seoul Credit Guarantee Foundation Mapo branch and Woori Bank. For detailed inquiries, contact the Seoul Credit Guarantee Foundation call center or the Mapo-gu Economic Promotion Division.

Mayor Park Gang-su of Mapo-gu said, “Through this agreement, we hope that small businesses and small merchants in Mapo, who are struggling under difficult conditions, will overcome the management crisis and plan a hopeful future.” He added, “The district will continue to prepare various support measures for business stability and do its best to be a ‘reliable partner’ for small businesses and small merchants, the foundation of the local economy.”