Gangseo-gu Provides Up to 50 Million KRW Loans to Low-Credit SMEs and Small Business Owners

Total Loan Amount 2.88 Billion... Applications Open from the 2nd of Next Month

Gangseo-gu, Seoul (Mayor Jin Gyo-hoon) announced on the 26th that it will increase the loan limit for the "Priming Special Loan Project for Low-Credit Small and Medium Enterprises (SMEs) and Small Business Owners."

The Priming Special Loan Project supports low-credit SMEs and small business owners, who face strict loan screening and high interest rates, by providing loans under relaxed conditions to help restore their credit and stabilize their management. The total loan fund amounts to 2.88 billion KRW, jointly provided by the district office and Shinhan Bank and contributed to the Seoul Credit Guarantee Foundation.

Considering the worsening economic conditions, the district will increase the loan limit from the existing 20 million KRW to 50 million KRW starting May 2nd. Eligible applicants are SMEs and small business owners who have been registered and operating in Gangseo-gu for more than one year. However, businesses in restricted industries such as entertainment bars and gambling facilities, or those that have received credit guarantees from the Credit Guarantee Foundation within the past year or have guaranteed amounts exceeding 70 million KRW, are not eligible for support.

The interest rate is variable (5.26% as of April 22), and the repayment method is a one-year grace period followed by four years of equal installment repayments. During the one-year grace period, the district covers the full interest, and the businesses will bear the interest from the second year onward.

Applications open on May 2nd. Interested businesses should bring the required documents and consult at Shinhan Bank branches (Gayang Station, Deungchon Station, Hwaggok Station) and proceed with the loan according to the guidance provided. Detailed information, including the required document forms, can be found on the district’s website (Notices/News).

Mayor Jin Gyo-hoon stated, “Since it is more difficult to obtain loans and the interest rates are higher for those with lower credit ratings, we have expanded the loan scale for low-credit SMEs and small business owners.” He added, “We will continue to develop various support policies to assist SMEs and small business owners.” For more details, please contact the Gangseo-gu Regional Economy Division.