Yangcheon-gu Lowers Interest Rate on Small Business Loans to 0.8%

Annual loan support of 5 billion KRW, 2.5 billion KRW each for the first and second half of the year; applications for the first half start on February 6

Up to 300 million KRW for manufacturing, up to 80 million KRW for other wholesale and retail businesses

Temporary reduction of loan interest rate from 1.5% to 0.8%, repayment terms: 2-year grace period followed by 3-year equal installments

[Asia Economy Reporter Park Jong-il] Yangcheon-gu (District Mayor Lee Gi-jae) is operating the ‘2023 Small and Medium Enterprise Development Fund Loan Support Project’ with an annual scale of 5 billion KRW to assist small and medium enterprises (SMEs) and small business owners facing management difficulties due to economic recession and interest rate hikes. Applications for the first half loan support will begin on February 6.

The Yangcheon-gu SME Development Fund was first established in 1993 with 1 billion KRW from the district’s own funds and has supported 957 cases totaling 66.9 billion KRW to date, contributing to the management stability of SMEs and small business owners.

The loan amount for the first half is 2.5 billion KRW, with support available up to 300 million KRW for manufacturing and up to 80 million KRW for other wholesale and retail businesses. The loan interest rate is temporarily reduced from 1.5% to 0.8% until the end of this year. Repayment terms are a 2-year grace period followed by 3 years of equal installment repayments. The loan funds must be used solely for SME facility, operating, and technology development expenses.

Eligible applicants for the first half loan are SMEs and small business owners with business locations in Yangcheon-gu who have been registered as business operators for at least six months as of the announcement date (February 3). Excluded industries include tobacco wholesale and retail, alcoholic beverage wholesale and retail, restaurants, real estate, finance, and insurance.

If existing beneficiaries reapply for loans, support is possible within the loan limit minus any outstanding balance. Applications exceeding the maximum limit will be excluded from loan support.

The application period for the first half loan is from February 6 to February 28. Applicants must submit the loan application form, business plan, business registration certificate, and other required documents in person to the Job and Economy Division (7th floor) of the district office. Detailed application documents can be found in the announcements and public notices section on the district office website. The second half loan support (2.5 billion KRW) is planned to be conducted between July and August.

Applicants for the first half SME Development Fund loan will be finalized after review by the Fund Operation Committee, and loans can be obtained from mid-March through Woori Bank Yangcheon-gu Office Branch.

Lee Gi-jae, Mayor of Yangcheon-gu, said, “We hope this first half SME Development Fund loan support will help stabilize the management of SMEs and small business owners struggling due to high inflation and high interest rates. We will continue to actively discover and implement practical management support measures to revitalize the local economy.”

Dongjak-gu provides 2 million KRW to companies and 1 million KRW to employees for youth recruitment for one year

‘Dongjak-gu Youth Tomorrow Filling Support’ project runs until December to alleviate manpower shortages in SMEs and foster young talent

Dongjak-gu (District Mayor Park Il-ha) announced that it will implement the ‘Dongjak-gu Youth Tomorrow Filling Support’ project until December to help alleviate manpower shortages in SMEs and foster young talent.

The ‘Youth Tomorrow Filling Support’ is a system where SMEs with business locations in Dongjak-gu receive a hiring incentive of 2 million KRW when they hire young residents of the district, and the young employees receive a retention support payment of 1 million KRW.

In particular, considering the characteristics of the area with many small-scale micro-enterprises, the district has removed the limit on the number of employees insured under employment insurance, thereby expanding the support scope for both companies and youth.

Eligible applicants are SMEs with business locations in Dongjak-gu and Dongjak-gu residents aged between 15 and 34. Military service veterans can apply up to age 39 depending on their service period.

Companies or youth wishing to apply must submit the application form and supporting documents within six months from the date of regular employment by visiting the Economic Policy Division or sending by mail or email.

Applications are accepted year-round, and payments are made in installments at 1, 6, and 12 months after hiring. For more details, contact the Economic Policy Division.

Park Il-ha, Mayor of Dongjak-gu, said, “We hope this project will provide opportunities for local companies and excellent young talents to grow together. We will continue to strive for the future of youth through expanding job projects.”