Seongnam City Injects 13 Billion Won Annual 1% 'Food Promotion Fund' into Food Businesses

Seongnam City Hall

Seongnam City in Gyeonggi Province will provide loans from a Food Promotion Fund totaling 13 billion KRW at an annual low interest rate of 1% to improve hygiene levels and promote facility upgrades in food businesses. The maximum loan amount and repayment conditions vary depending on the type of food hygiene business and the required funds.

Seongnam City offers loans with a 2-year grace period and 3-year equal installment repayment terms: up to 500 million KRW for food manufacturing and processing businesses needing production facility improvements, and up to 100 million KRW for food service businesses seeking to upgrade their business facilities.

Additionally, food service businesses requiring restroom facility improvements can receive loans up to 20 million KRW, and exemplary restaurants and hygiene grade designated businesses needing operating funds can receive up to 30 million KRW, both with a 1-year grace period and 2-year equal installment repayment terms.

General restaurants, cafes, and bakeries can receive loans up to 20 million KRW as "COVID-19 Emergency Operating Funds" to cover fixed expenses such as labor costs, facility management, and operating expenses, with a 1-year grace period and 2-year equal installment repayment terms. This funding support is provided temporarily until the infectious disease crisis alert is lifted.

Food hygiene-related business operators wishing to apply for loans should bring their ID, business registration certificate, and business license to a local NongHyup Bank branch (excluding regional NongHyup branches) for consultation, then submit the Food Promotion Fund loan preliminary credit investigation form and application to the Hygiene Policy Division on the 5th floor of Seongnam City Hall.

The NongHyup side will assess the applicant's collateral and determine loan eligibility and amount.

A Seongnam City official stated, "To ease the economic burden on food hygiene businesses struggling with high interest rates, we implemented this program last year as well, providing loans totaling 1.5 billion KRW at a 1% low interest rate to 75 food hygiene businesses."