Jongno-gu Provides Small Business Owners with Annual 1.5% Low-Interest Loans

Loan support with a low fixed interest rate of 1.5% per year for small and medium-sized enterprises and small business owners in the region struggling due to economic recession

After consulting with Woori Bank Jongno-gu Office Branch and Seoul Credit Guarantee Foundation, submit the required documents to the Job and Economy Division by May 26

Jongno-gu (Mayor Jeong Munheon) is implementing the ‘2023 First Half Small and Medium Enterprise Development Fund Additional Loan Support’ to assist small and medium-sized enterprises and small business owners facing difficulties due to the economic downturn.

The total scale is 2 billion KRW, with a loan interest rate of 1.5%, a 1-year grace period, and 4 years of equal installment repayment. Loans are available only to companies with credit or collateral under bank credit regulations.

The limit is up to 60 million KRW with real estate collateral, and loans guaranteed by the Credit Guarantee Foundation are up to 50 million KRW for Jongno-gu residents and up to 30 million KRW for residents of other areas.

The loan funds must be used for facility and operating funds or technology development funds.

The eligible applicants are small and medium-sized enterprises with factories registered in the region, tenants of startup incubation centers, and small enterprises and small business owners as defined in Article 2 of the Act on the Protection and Support of Small Businesses. Loan-restricted industries include entertainment bars, finance, insurance, and real estate businesses.

Jeong Munheon, Mayor of Jongno District

Applications can be submitted by consulting with Woori Bank Jongno-gu Office Branch and Seoul Credit Guarantee Foundation, then submitting a business plan, a copy of the business registration certificate, and proof of business location by the 26th.

Additionally, on the 2nd, the district signed a business agreement with Seoul Credit Guarantee Foundation and Woori Bank for the ‘Safe Interest Rate Interest Support System,’ providing loans up to 50 million KRW per company (including existing guarantee balances) to small enterprises and small business owners located in the region.

The ‘Safe Interest Rate Interest Support System’ involves Woori Bank preparing 1 billion KRW in credit guarantee funds, the Credit Guarantee Foundation supporting credit guarantees worth 12.5 billion KRW based on this, and the district supporting 2% interest for one year.

The conditions are a 3-month CD variable interest rate + up to 1.9%, with a 1-year grace period and up to 4 years of equal principal installment repayment. To ensure prompt and efficient fund support, the district accepts loan applications at the Seoul Credit Guarantee Foundation Jongno Branch and all Woori Bank branches in the district.

Mayor Jeong Munheon stated, “Considering the prolonged COVID-19 pandemic and high interest rates, we decided to provide additional loan support this first half to give more benefits to small business owners in the region,” and added, “The district will continue to devise various support measures to help small enterprises and small business owners in Jongno overcome management crises and grow.”