'Loan support up to 200 million KRW provided'...Low-interest loans to ease financial burdens for small and medium-sized enterprises (SMEs) and small business owners
Fixed annual interest rate of 1.8%, loans available from a minimum of 30 million KRW up to 200 million KRW
Applications accepted from July 31 to August 11 by visiting the Gwangjin-gu Office Regional Economy Division
Gwangjin-gu (Mayor Kim Kyungho) is launching a loan support project for the SME Development Fund worth 3.5 billion KRW in the second half of the year.
The district has increased the fund by 5 billion KRW compared to last year, operating a total of 8 billion KRW in SME Development Fund loan support projects this year. In the first half, 4.4 billion KRW was provided to 35 companies.
In the second half, 3.5 billion KRW will be supported. The fixed interest rate is 1.8% annually, with loan limits ranging from a minimum of 30 million KRW to a maximum of 200 million KRW per company. The program operates at a lower interest rate compared to commercial banks to alleviate the financial burdens of local SMEs and small business owners.
The loan funds must be used for working capital, facility funds, or technology development funds, and repayment will be made in equal installments over three years after a one-year grace period.
Eligible applicants are SMEs and small business owners with business locations in Gwangjin-gu. Businesses must have been registered in Gwangjin-gu for at least six months as of the application date and must have collateral capacity according to bank credit regulations (such as real estate or credit guarantees). However, companies currently repaying loans from the Gwangjin-gu SME Development Fund or Gwangjin-type special loans, those with national or local tax arrears, and certain industries such as finance, insurance, entertainment bars, and other gambling facilities are excluded from eligibility.
The application period is from July 31 to August 11. Applications must be submitted in person to the Gwangjin-gu Office Regional Economy Division with required documents such as the loan application form and business plan. Detailed information can be found on the Gwangjin-gu Office website under the ‘Notices’ section.
Mayor Kim Kyungho stated, “We hope this loan support project will help resolve the financial difficulties faced by SMEs and small business owners,” and added, “We will continue to actively promote various support policies for business improvement and development.”
Additionally, the district operates the ‘Gwangjin-type Special Loan’ support project for small businesses and small business owners lacking collateral. The loan limit is up to 50 million KRW per company, with the district subsidizing 2% interest for two years. Applications can be made by visiting the Seoul Credit Guarantee Foundation Gwangjin Branch after making a prior reservation.
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