Seoul Jung-gu Provides Up to 40 Million Won Special Guarantee for Myeongdong Street Vendors

Special Guarantee for Business Registration and Card Terminal Installers
Free Card Terminal Support and Linkage to Self-Employed Clinic

Seoul Jung-gu Office building exterior.

Jung-gu, Seoul (Mayor Kim Gil-seong) announced on the 17th that it will implement a 'Community-Based Special Guarantee' from this month to support policy funds for street vendors in Myeongdong.

This is to provide a stable operating environment for operators who lack collateral capability, helping to secure their livelihoods and supporting them to become full-time or start their own businesses in the future. This is the first time nationwide that a special guarantee is operated specifically for street vendors.

The guarantee scale for this year's special guarantee is up to 3.75 billion KRW, targeting operators in Myeongdong street vendors who have completed business registration and installed card terminals. As of this month, there are 184 business registrations among Myeongdong street vendors, of which 118 stores have installed card terminals.

Operators can receive a guarantee of up to 20 million KRW each, and up to 40 million KRW when becoming full-time or starting a business. The loan interest rate is around 3.8%, and the guarantee period is up to 5 years.

To ensure smooth implementation of the special guarantee, three organizations are joining forces. Jung-gu Office is responsible for administrative support such as issuing road occupancy permits, Woori Bank provides card terminals free of charge and waives terminal fees for two years. Contributions for the special guarantee will also be supported annually. Seoul Credit Guarantee Foundation supports the special guarantee for street vendors and helps them receive hygiene and marketing diagnosis and solution consulting worth 500,000 KRW in connection with Seoul City's 'Self-Employment Clinic.'

Jung-gu stated that this 'Community-Based Special Guarantee' is meaningful in helping street vendor operators solidify their business foundation and strengthen competitiveness. It aims to foster the self-sustainability of street vendors and provide a foundation for them to become full-time or start their own businesses.

Mayor Kim Gil-seong said, “The implementation of this special guarantee will be an important step to help Myeongdong street vendor operators stabilize and grow their business foundation,” adding, “Starting with supporting operators, we will create a virtuous cycle structure that leads to the development of the Myeongdong Tourism Special Zone.”