Seongdong-gu Provides 13.5 Billion KRW Loan Support for SMEs and Small Business Owners

Loan Support of 13.5 Billion KRW This Year for SMEs and Small Business Owners to Provide Practical Assistance

Application Period from the 8th to the 17th for 7 Billion KRW in the First Half Targeting SMEs and Small Business Owners Registered for More Than 6 Months

Seongsu-dong Panorama

[Asia Economy Reporter Park Jong-il] Seongdong-gu (Mayor Jeong Won-oh) will provide a total of 13.5 billion KRW in loans this year to small and medium-sized enterprises (SMEs) and small business owners struggling due to the economic downturn and high inflation, starting the first half application period from the 8th.

The loan amount is 7 billion KRW for the first half and 6.5 billion KRW for the second half, with applications for the first half loan support accepted from the 8th to the 17th. Eligible applicants are SMEs and small business owners with business locations in Seongdong-gu who have been registered for more than six months. The loan period is four years. However, businesses that are temporarily closed or shut down, those with bad credit, and those in restricted or prohibited industries are not eligible to apply.

The first half loan support is divided into 4 billion KRW from the SME Development Fund at an interest rate of 1.5% and 3 billion KRW from bank cooperative funds at market interest rates. For the bank cooperative funds, Seongdong-gu supports 1% annual interest on the bank loan interest rate. The repayment terms for all loans are a one-year grace period followed by three years of equal installment repayments.

Applicants should bring the required documents and consult in advance at Shinhan, KEB Hana, Woori, or IBK banks, then visit the Seongdong-gu Office Regional Economy Division to submit their applications. More details can be found in the notices section on the district’s website.

Jeong Won-oh, Mayor of Seongdong-gu, said, “The triple crisis of economic recession, high interest rates, and high inflation continues to cause difficulties for local businesses. We hope that the SME Development Fund loan support project will protect local companies and serve as a practical measure to help stabilize business management.”

Guro-gu Provides 7 Billion KRW Loan Support for SMEs and Small Business Owners This Year

40 Billion KRW from SME Development Fund with 1.5% Interest Rate, Up to 100 Million KRW Loan Support

30 Billion KRW Bank Cooperative Funds, Interest Subsidy Rate Increased from 1% to 2%

Applications for First Quarter SME Development Fund Accepted from February 13

Guro-gu is launching a 7 billion KRW loan support program for SMEs and small business owners this year.

Guro-gu (Mayor Moon Heon-il) announced that it will implement the ‘2023 SME and Small Business Owner Development Fund Loan Support’ to alleviate management difficulties and reduce financial burdens for SMEs and small business owners.

This year’s support includes ▲40 billion KRW in direct loans from the district’s SME Development Fund (25 billion KRW for SMEs, 15 billion KRW for small business owners) and ▲30 billion KRW in bank cooperative funds (20 billion KRW for SMEs, 10 billion KRW for small business owners). Eligible applicants are SMEs and small business owners with business locations and registrations in Guro-gu.

The district will accept applications for the first quarter SME Development Fund amounting to 1.6 billion KRW (1 billion KRW for SMEs, 600 million KRW for small business owners) from February 13 to 24.

The loan limit is up to 100 million KRW for SMEs and up to 30 million KRW for small business owners, with an interest rate of 1.5%, a one-year grace period, and four years of installment repayment.

For the bank cooperative funds, support is provided through interest differential subsidies based on loan execution. This year, the district increased the interest subsidy rate from 1% to 2%.

When taking out loans from commercial banks, SMEs can receive up to 200 million KRW and small business owners up to 50 million KRW with a maximum 2% interest subsidy, with applications accepted during the first five days of each month.

Additionally, a special guarantee of 390 million KRW for small business owners will continue to be supported.

For more information, visit the Guro-gu Office website or contact the Regional Economy Division.

A Guro-gu official said, “We hope this will provide practical help to SMEs and small business owners struggling with rising loan interest rates. We will continue to be a reliable support pillar by discovering and supporting necessary policies.”

Last year, Guro-gu supported 6.53 billion KRW in SME Development Fund loans to 66 companies, and six companies received loans totaling 420 million KRW through bank cooperative funds with interest subsidies.

Gangnam-gu Expands Loan Support for SMEs and Small Business Owners from 20 Billion KRW to 30 Billion KRW

Loan Scale Increased by 10 Billion KRW Compared to Last Year... Low Interest Rate of 0.8%, Up to 300 Million KRW for Corporations and 50 Million KRW for Individual Businesses

Gangnam-gu (Mayor Jo Seong-myeong) will implement a loan support program worth 30 billion KRW this year for SMEs and small business owners facing difficulties due to high interest rates and economic recession. The loan amount is divided into 20 billion KRW for the first half and 10 billion KRW for the second half, with applications for the first half starting on February 13.

Eligible applicants are businesses located in Gangnam-gu that have been registered for more than one year. The funds can be used for operations, facilities, and technology development. The loan limit is up to 300 million KRW for corporate businesses and 50 million KRW for individual business owners. The fixed interest rate is 0.8% annually, with a one-year grace period and four years of equal installment repayments. However, businesses currently repaying SME Development Fund loans, those with national or local tax arrears, temporarily closed or shut down businesses, and those in restricted industries such as entertainment bars, restaurants with exclusive areas over 330㎡, and lodging businesses are excluded.

Applications are accepted from February 13 to 28. Applicants should prepare the loan application form, business plan, and other required documents and submit them in person at the loan reception desk on the basement first floor of the district office main building. For more details, visit the district office website or contact the Regional Economy Division.

Meanwhile, the district has allocated a budget of 5.1 billion KRW this year to implement a ‘Commercial Bank Loan Interest Support Project’ scheduled for early March, which will subsidize part of the interest (up to 2.5%) on new loans totaling 100 billion KRW from partner banks (Shinhan and Woori).

Mayor Jo Seong-myeong of Gangnam-gu said, “Considering the difficult economic situation, we have increased the loan scale by 10 billion KRW compared to last year. We hope this support project will help stabilize management and alleviate financial difficulties for local businesses.”