Seongbuk-gu Supports Small Business Financial Difficulties Up to 100 Million Won

Seongbuk-gu Provides 3 Billion KRW in Loans to Support Small and Medium Enterprises... 1.66 Billion KRW Planned for Second Half of the Year

Applications for the second half are accepted from August 29 to September 18 at the Seongbuk-gu Office Regional Economy Division

Loan Amount: (Secured Loan) 100 million KRW, (Credit Loan) up to 50 million KRW... Loan Terms: (Interest Rate) 1.2% per annum / (Repayment Terms) 1-year grace period, 3-year equal installment repayment

Seongbuk-gu (Mayor Lee Seung-ro) is launching the 2023 second half Small and Medium Enterprise (SME) Development Fund loan support project to stabilize the management of SMEs and small business owners who are struggling to secure business funds due to high inflation and high interest rates.

The district announced that out of the total budget of 3 billion KRW for this year, 1.34 billion KRW was supported in the first half, and it plans to provide loan support worth 1.66 billion KRW in the second half.

The support targets are SMEs and small business owners who have a business location in Seongbuk-gu and have been operating for more than three months after business registration. Eligible companies must be able to provide collateral according to Woori Bank loan terms or obtain a guarantee certificate from the Seoul Credit Guarantee Foundation. However, businesses such as pubs, restaurants with exclusive areas over 300㎡, real estate, finance and insurance, lodging, liquor wholesale, precious metals and game rooms, luxury and speculative businesses, tobacco brokerage and wholesale, and multi-level marketing are excluded. Companies currently receiving fund loans are also restricted.

Loans up to 100 million KRW are available with collateral (real estate, etc.), and up to 50 million KRW for credit guarantee loans. The funds can be used for facility funds, operating funds, and technology development funds. The loan interest rate is 1.2% per annum, with repayment terms of a 1-year grace period followed by 3 years of equal installment repayments.

The application period is from August 29 to September 18, and applications must be submitted in person at the 8th floor Regional Economy Division of Seongbuk-gu Office. Applicants can download the application forms from the Seongbuk-gu Office website’s notices and announcements section and submit the loan application, business plan, and a copy of the business registration certificate.

Loan eligibility can be confirmed through prior consultation: secured loan applicants at Woori Bank Seongbuk-gu Office branch, and credit loan applicants at the Seoul Credit Guarantee Foundation Seongbuk branch. Approval and loan amounts will be finalized after review by the Seongbuk-gu SME Development Fund Operation Deliberation Committee.

Mayor Lee Seung-ro of Seongbuk-gu stated, “The Seongbuk-gu SME Development Fund loan support project offers significantly lower interest rates compared to general banks. It is intended to assist small business owners facing management difficulties. We sincerely hope this support will relieve financial difficulties for local merchants and help sow the seeds of hope for stable management.”

For inquiries about applications, please contact the Small Business Support Team at the Regional Economy Division of Seongbuk-gu Office by phone.