Seongdong-gu to Provide Low-Interest Loans Worth 18.6 Billion KRW in 2024 for SMEs and Small Business Owners

300 Billion KRW Total Loan Support for SMEs and Small Business Owners, 18.6 Billion KRW Remaining in 2024
Seongdong-gu Offers Up to 1.5% Annual Interest Support with 2% Range Variable Interest Rate Benefits

Seongdong-gu (Mayor Jung Won-oh) will provide a total of 18.6 billion KRW in 'Seongdong-type Special Credit Guarantee Loans' to small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling with management due to the economic downturn and rising interest rates.

The special credit guarantee loan system is designed for self-employed individuals who have difficulty obtaining loans from general financial institutions due to lack of credit or collateral. Since Seongdong-gu, Shinhan Bank, and Seoul Credit Guarantee Foundation cooperate and the guarantee is provided by the Seoul Credit Guarantee Foundation, loans can be supported without separate collateral or guarantors.

The support target is SMEs or small business owners who have registered their business in Seongdong-gu for more than six months and have a main office or factory. The loan limit for new companies is up to 30 million KRW, and companies with existing guarantee balances at the Seoul Credit Guarantee Foundation can receive up to 20 million KRW. When combined with the existing guarantee balance, support of up to 50 million KRW is possible. Only the credit guarantee certificate from the Seoul Credit Guarantee Foundation can be used as collateral.

With funds in cooperation with Shinhan Bank, the district supports up to 1.5% annual interest, allowing loans at a variable interest rate in the 2% range. The loan period is four years, with one year grace period and three years of equal installment repayment. The loan application period is until funds are exhausted.

Companies wishing to apply for the loan should bring the representative’s ID card, a copy of the business registration certificate, sales report documents, and other required documents, then visit 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 notice section on the Seongdong-gu Office website. However, companies that have used the foundation within the past year and still have outstanding balances, companies with no sales performance, and companies prohibited or restricted from guarantees (such as those in restricted industries) are not eligible to apply. Additionally, loan limits may be adjusted or loan support may be denied due to changes in personal credit or collateral between application and loan execution.

Seongdong-gu has been supporting Seongdong-type special credit guarantee loans worth 30 billion KRW since May 2023. Last year, a total of 471 companies received 11.4 billion KRW, and this year an additional 18.6 billion KRW, the remaining amount, will be supported. In addition, the district has been striving to support SMEs and small business owners by providing a total of 6.5 billion KRW in loans, including 3.5 billion KRW from the SME Development Fund and 3 billion KRW from bank cooperative funds in the second half of last year.

Jung Won-oh, Mayor of Seongdong-gu, stated, "One of the most needed supports for SMEs and small business owners in difficult situations such as the economic recession is loan support. We will continue to seek effective financial support measures through ongoing consultations with the Seoul Credit Guarantee Foundation and Shinhan Bank." He added, "We will spare no effort to help solve the financial difficulties of more SMEs and small business owners with meticulous care."