Gwangjin-gu Provides 2.5 Billion KRW in Small Business Development Fund Loans at 1.8% Annual Interest Rate

Loans up to 200 million KRW at 1.8% fixed annual interest for SMEs and small business owners operating locally for over 6 months
1-year grace period, 3-year equal installments
Applications accepted at the Regional Economy Division from April 29 to May 3

Gwangjin-gu (District Mayor Kim Kyung-ho) is launching a loan support program for small and medium-sized enterprises (SMEs) with a fund of 2.5 billion KRW. This is expected to provide some relief to SMEs and small business owners struggling with high inflation and high interest rates.

The support targets SMEs and small business owners who have been registered in Gwangjin-gu for more than six months and have collateral capacity according to bank credit regulations, such as real estate collateral or credit guarantees. ▲Those who have already benefited from the loan support program ▲Businesses that are temporarily closed or closed down ▲Those with national or local tax arrears ▲Certain industries such as finance, insurance, real estate rental, and entertainment bars are excluded from support.

Loans are offered at a fixed annual interest rate of 1.8%, with a maximum limit of 100 million KRW for individual businesses and 200 million KRW for corporations. The loan terms include a one-year grace period followed by three years of equal installment repayments, and the funds can only be used for working capital, facility funds, or technology development funds.

Applications are accepted from April 29 to May 3. Applicants must visit the Gwangjin-gu Office Regional Economy Division (116 Jayang-ro, Wellz Tower 2nd floor) with the loan application form, business plan, and other required documents. Detailed information can be found on the Gwangjin-gu Office website.

Kim Kyung-ho, Mayor of Gwangjin-gu, said, “We expect this to be a great help to small business owners facing difficulties in business operations due to the economic downturn,” and added, “We will continue to strive to stabilize management and improve the business environment for SMEs and small business owners through various customized projects.”

Meanwhile, the district also operates the ‘Gwangjin-type Special Loan’ program, which provides up to 70 million KRW in funds at a variable interest rate around 1.8% for small enterprises and small business owners without collateral. The district supports 2% of the interest for two years, and detailed consultations are available at the Seoul Credit Guarantee Foundation.