Seongbuk-gu Provides Low-Interest Loans Worth 20 Billion KRW to SMEs and Small Business Owners

Seongbuk-gu, Woori Bank, and Seoul Credit Guarantee Foundation Sign Agreement to Provide 20 Billion KRW Loan Support
Lower Interest Rates Than Commercial Bank Loans Offered Through Relaxed Screening Criteria
Applications Accepted from April 15 Until Funds Are Exhausted at Three Woori Bank Branches and Seoul Credit Guarantee Foundation Seongbuk Branch
Loan Scale 20 Billion KRW, Loan Limit 50 Million KRW per Company, Interest Rate 3.59% per Year (Variable Rate)

Seongbuk-gu, Seoul (Mayor Lee Seung-ro) signed a 'Special Loan Support Agreement for Small Business Owners' with Woori Bank and the Seoul Credit Guarantee Foundation at the Seongbuk-gu Mayor's Office on the 22nd.

This loan support project involves Woori Bank contributing 1.5 billion KRW this year out of a total of 5 billion KRW specially allocated over four years (2023?2026) to support small business owners in our district. Seongbuk-gu contributed 100 million KRW to simplify the guarantee screening process, and through the Seoul Credit Guarantee Foundation's guarantee, loans totaling 20 billion KRW will be provided.

Through this loan agreement, the district will relax screening criteria for small and medium-sized enterprises and small business owners located in Seongbuk-gu who lack collateral or have low credit ratings and find it difficult to obtain business funds from commercial banks, offering benefits with interest rates lower than those of commercial bank loans.

Eligibility requires small business owners located in Seongbuk-gu with at least three months of business registration and a personal credit score of 595 or higher.

The loan limit is up to 50 million KRW per company, including existing guarantees, and the loan period is a 1-year grace period followed by 4 years of equal principal repayments.

The loan interest rate is a minimum of 3.59% per annum (variable rate). The Seoul Credit Guarantee Foundation's guarantee fee rate is 0.8% per annum for new loans and 1.0% per annum for additional loans, with the guarantee fee prepaid at loan execution.

Exclusions include companies that have issued a Seoul Credit Guarantee Foundation guarantee certificate within the past year and still have outstanding loan balances, as well as certain industries such as entertainment bars. Corporations or businesses with co-representatives must apply separately to the Seoul Credit Guarantee Foundation.

The application period is scheduled to start from April 15, 2024, until funds are exhausted, on weekdays from 9:00 to 11:00 AM and 1:00 to 4:00 PM. Applications can be submitted in person at three Woori Bank branches (Seongbuk-gu Office Branch, Gireum New Town Branch, Dongsomun Financial Center) and the Seoul Credit Guarantee Foundation Seongbuk Branch.

Application documents can be inquired about on the Seongbuk-gu Office website or at Woori Bank’s Seongbuk-gu Office Branch, Gireum New Town Branch, Dongsomun Financial Center, and the Seoul Credit Guarantee Foundation Seongbuk Branch.

Mayor Lee Seung-ro of Seongbuk-gu said, “I sincerely thank Woori Bank and the Seoul Credit Guarantee Foundation for helping secure funding and corporate guarantees. I hope that the special loan fund for small business owners prepared through this agreement will serve as a catalyst to alleviate the management difficulties of small business owners in Seongbuk-gu who are struggling with high interest rates and high inflation.”