Seongdong-gu Provides a Total of 30 Billion KRW in the 1st Phase and 27 Billion KRW in the 2nd Phase, Offering 30 Billion KRW in Loans to Small and Medium Enterprises and Small Business Owners
Benefits Include Variable Interest Rates in the 2% Range Through District Interest Support on Top of Market Bank Rates... Applications Accepted Until Funds Are Exhausted
Seongdong-gu (Mayor Jeong Wono) is implementing a total of 30 billion KRW in low-interest "Seongdong-type Special Credit Guarantee Loans" to support small and medium enterprises and small business owners struggling with management difficulties due to the economic downturn and high inflation.
Applications for the first phase loan of 3 billion KRW will be accepted until funds are exhausted. This loan, provided in cooperation with Shinhan Bank, has a 4-year term (1-year grace period and 3 years of equal installments). The district supports interest up to 1.5% per annum, allowing borrowers to receive loans at a variable interest rate in the 2% range. The second phase, totaling 27 billion KRW, will be announced separately in July after assessing demand.
The support targets small and medium enterprises or small business owners who have registered their business in Seongdong-gu and have had a main office or factory for more than six months. Collateral is limited to credit guarantees issued by the Seoul Credit Guarantee Foundation. Companies with existing guarantee balances at the foundation can receive up to 20 million KRW (within a total guarantee amount of 50 million KRW including existing guarantees), while those without guarantee balances can receive up to 30 million KRW.
Applicants should bring copies of their business registration certificate, sales report documents, and other required materials to the Seoul Credit Guarantee Foundation Seongdong branch or Shinhan Bank Seongdong-gu Office branch for prior consultation and application. Further details can be found in the notices section on the district’s official website.
However, companies that have used the foundation within the past year and still hold balances, companies without sales performance, and those prohibited or restricted from guarantees are not eligible to apply.
Additionally, loan limits may be adjusted or support may be denied due to changes in personal credit or collateral strength until the loan is executed.
Jeong Wono, Mayor of Seongdong-gu, stated, "In difficult times marked by high interest rates and economic recession, loan support is the most needed. We will continue to seek effective financial support measures through ongoing consultations with related organizations." He added, "We hope this Seongdong-type loan support will help many small and medium enterprises and small business owners overcome their financial difficulties."
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