Interest rate 0.8%, 1-year grace period with 4-year equal installment repayment terms
Applications accepted year-round until the 4 billion KRW from the former Job Fund is exhausted
Targeting youth (under 39 years old) who have a business location in Yongsan and have resided there for more than 6 months
[Asia Economy Reporter Park Jong-il] Yongsan-gu (Acting Mayor Kim Seon-su) will start supporting youth business loans in 2023 using the district’s Job Fund from February 1.
The loan scale is 4 billion KRW with an annual interest rate of 0.8%. Borrowers can take up to 100 million KRW under conditions of a 1-year grace period and 4 years of equal installment repayments. The funds can be used for business stabilization, facility expenses, and rental deposit costs.
The target applicants are youth under 39 years old (small and medium-sized business owners, small business owners) who have been operating a business within the district and have resided in Yongsan for more than 6 months as of the application date. Businesses such as general entertainment restaurants, dance entertainment restaurants, and other gambling facility management and operation businesses are excluded.
Applications can be submitted at the Woori Bank Yongsan-gu Office Branch Job Fund one-stop window. Required documents include the loan application form, business plan, resident registration abstract, financial statements or VAT taxable standard confirmation, and other related forms, which can be downloaded from the district website under ‘District News - Job Fund’.
The district holds a fund management review committee around the 20th of each month to select loan recipients. Preliminary review items include whether the applicant is a small or medium-sized business or small business owner, whether they are a disabled person or woman-owned business, promising SMEs, venture companies, or companies holding industrial property rights.
For businesses with 5 or more regular employees, loans up to 100 million KRW are available; for those with fewer than 5 employees, up to 50 million KRW. Loans will be disbursed after February 21, the application date.
Acting Mayor Kim Seon-su said, “This year, we have relaxed the residency requirement from 1 year to 6 months and doubled the loan scale. We hope this will help young entrepreneurs struggling due to the prolonged economic downturn.”
The district established and secured resources through the ordinance for the installation and operation of the Job Fund in 2018. As of 2023, the fund size reaches 11 billion KRW. Over the past 4 years, 115 loans totaling 4.488 billion KRW have been made, with 1.1401 billion KRW repaid so far.
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