Geumcheon-gu Provides Up to 100 Million KRW Loans at 2% Interest for Food Hygiene Businesses

Geumcheon-gu Provides Loan Support for Food Service and Manufacturing Businesses... Total of 150 Million KRW, Apply at Public Health Center Hygiene Department... Annual Interest Rate 2% (1% for Restroom Facility Improvements), 2-3 Years Grace Period, 3-5 Years Equal Installment Repayment

Geumcheon-gu (Mayor Yu Seong-hoon) announced that it will provide loans from the Food Promotion Fund totaling 150 million KRW to food service establishments and food manufacturing businesses in the area.

This initiative aims to support the business stability of food hygiene establishments facing financial difficulties and to improve hygiene standards to enhance food culture.

The support targets food manufacturing businesses and food service establishments (general and casual restaurants, bakeries, and contracted catering businesses) that have obtained business permits (or registrations) in Geumcheon-gu. Those who have already received loans from the Food Promotion Fund and are currently repaying principal and interest as of the application date, or those within one year after repayment, are excluded.

The loan types are divided into two categories: ‘Facility Improvement Fund’ and ‘Model Restaurant Development Fund.’ The Facility Improvement Fund can cover up to 80% of costs related to business premises repairs, renovations, or the installation and purchase of machinery and equipment.

Food manufacturing businesses, general and casual restaurants, bakeries, and contracted catering businesses can receive up to 100 million KRW per establishment for facility improvement. However, funds for restroom improvements in food service establishments are limited to a maximum of 20 million KRW. Additionally, operators of pubs, sojubangs, karaoke bars, entertainment bars, and establishments handling objectionable foods are excluded from the Facility Improvement Fund but can receive loans only for restroom improvements.

The ‘Model Restaurant Development Fund’ supports the operation and facility improvements of establishments designated as model restaurants by the district and offers loans up to 50 million KRW.

The loan interest rate is 2%, which is lower than market rates (1% for restroom improvement funds). Food manufacturing businesses have a repayment plan of a 3-year grace period followed by 5 years of equal installments, while other businesses have a 2-year grace period followed by 3 years of equal installments.

Priority is given to loans for food manufacturing businesses, excellent establishments practicing good meal plans, and those installing food waste reduction devices.

Details such as required documents can be found on the Geumcheon-gu Public Health Center website under the ‘Notices and Announcements’ section, and applications can be submitted by visiting the Health Center’s Hygiene Division.

Yu Seong-hoon, Mayor of Geumcheon-gu, stated, “We hope that the Food Promotion Fund loan support will be of great help to food-related businesses struggling amid high inflation and high interest rates.”