Gwanak-gu, Special Credit Guarantee for SMEs and Small Business Owners

September 18, Special Credit Guarantee Agreement Signed for 21.25 Billion Won
New Supporters' Guarantee Fee Rate Up to 0.8% Per Year with Guarantee Coverage Up to 100%, Additional Supporters' Guarantee Fee Rate Up to 1.0% Per Year with Guarantee Coverage Up to 95% Supported

Gwanak-gu (District Mayor Park Jun-hee) is taking steps to support the stable management of small and medium-sized enterprises (SMEs) and small business owners struggling with high interest rates and high inflation, and to revitalize the local economy.

The district operates various projects to support the management stability and capacity improvement of small business owners, including ▲ issuance of Gwanak Love Gift Certificates ▲ support for entry into online open markets ▲ discovery and cultivation of key stores ▲ Gwanak-style Artterior, and is making every effort to create sustainable alleyway commercial districts.

Furthermore, on September 18, the district signed a “Special Contribution Business Agreement for Close Support of SMEs and Small Business Owners” with Woori Bank, Shinhan Bank, and the Seoul Credit Guarantee Foundation.

According to the agreement, the district, Woori Bank, and Shinhan Bank will contribute a total of 1.7 billion KRW to the Seoul Credit Guarantee Foundation: 500 million KRW from Gwanak-gu, 1 billion KRW from Woori Bank, and 200 million KRW from Shinhan Bank.

Through this agreement, the district will be able to provide a “special credit guarantee” worth 21.25 billion KRW to SMEs and small business owners in the district who lack collateral.

In addition, preferential treatment will be given regarding guarantee screening, including guarantee ratios and guarantee fees. New applicants can receive a guarantee fee rate of up to 0.8% per year and a guarantee ratio of up to 100%. Additional applicants with existing loan balances at the Seoul Credit Guarantee Foundation can receive a guarantee fee rate of up to 1.0% per year and a guarantee ratio of up to 95%.

The support targets are SMEs and small business owners located in Gwanak-gu who have been registered for more than three months, with a guarantee limit of up to 50 million KRW per company.

Applications can be made from September 19 through the Seoul Credit Guarantee Foundation Gwanak branch, and for more details, inquiries can be made to the Gwanak-gu Office’s Local Commercial District Revitalization Division.

District Mayor Park Jun-hee said, “Through this financial support, we hope to alleviate the burden on SMEs and small business owners facing financial difficulties and to inject vitality into the local economy,” adding, “We will continue to discover various projects and do our best to revitalize the local economy.”