Jung-gu Provides 23.8 Billion KRW in Unsecured Special Credit Guarantees for Small Business Owners

Jung-gu Signs Special Credit Guarantee Agreement with Woori, Shinhan, Hana Banks and Seoul Credit Guarantee Foundation on April 30
Loan Guarantee Without Collateral Worth 23.8 Billion KRW with 1.9 Billion KRW Contribution, 200 Million KRW More Than Last Year
For Small Business Owners Operating in Jung-gu, Maximum Guarantee Limit Up to 50 Million KRW Per Company

Jung-gu District in Seoul will provide approximately 23.8 billion KRW worth of unsecured special credit guarantees starting in May to alleviate financial difficulties faced by small businesses and small merchants.

To this end, on April 30, the district office signed a special guarantee business agreement with Woori Bank, Shinhan Bank, Hana Bank, and the Seoul Credit Guarantee Foundation at Jung-gu Office to closely support the local economy.

The local-focused special guarantee refers to the district contributing a certain amount to the Seoul Credit Guarantee Foundation to create guarantee funds for small businesses and small merchants who have difficulty obtaining loans due to insufficient collateral. The Seoul Credit Guarantee Foundation then reviews the companies and provides guarantees to enable loans.

For this special guarantee, the district contributed 100 million KRW, and together with Woori Bank (1 billion KRW), Shinhan Bank (500 million KRW), and Hana Bank (300 million KRW), which signed the business agreement to support small business management, a total guarantee fund of 1.9 billion KRW was established. The Seoul Credit Guarantee Foundation provides guarantee support worth approximately 23.8 billion KRW, which is 12.5 times the 1.9 billion KRW jointly contributed by the district and the three banks.

Last year, the district contributed 1.7 billion KRW in guarantee funds, enabling a guarantee limit of about 21.3 billion KRW. Through this, 526 small merchants were able to receive loans totaling 19.6 billion KRW. This year, with an increase of 200 million KRW in contributions, an additional 2.5 billion KRW in loans will be provided.

The support targets are small businesses and small merchants registered and operating in Jung-gu. Selected companies can receive loans up to 50 million KRW under conditions of either “1-year grace period with 4 years of equal installment repayment” or “2-year grace period with 3 years of equal installment repayment.” Companies affected by disasters such as fire or wind and flood damage can also receive special support within 30 million KRW.

Small businesses and small merchants wishing to apply for the special guarantee can make a consultation reservation and visit the Myeong-dong branch of the Seoul Credit Guarantee Foundation or apply through the mobile app (refer to QR code).

A district official stated, “Jung-gu, where traditional markets and alleyway shopping streets are concentrated, has about 50,000 small business establishments employing approximately 100,000 people,” and added, “We are grateful to the banks that helped us support more small merchants.” Furthermore, the official said, “We hope that this special guarantee will be well utilized to overcome difficulties in business operations.”