Yongsan-gu Provides 3 Billion KRW Loan Support from SME Development Fund... Interest Rate 1.5%

Up to 300 Million KRW for SMEs and 100 Million KRW for Small Businesses
Visit Yongsan-gu Office Woori Bank Branch by the 6th of Next Month for Application
90 Billion KRW Special Credit Guarantee Support for TimeF Registered Companies and Others

Yongsan District Office building.

Yongsan-gu, Seoul (District Mayor Park Hee-young) will provide loan support to small and medium-sized enterprises (SMEs) and small business owners in the second half of the year using the district's SME development fund.

The loan scale for the second half of the year is 3 billion KRW. SMEs can apply for up to 300 million KRW, and small business owners can apply for up to 100 million KRW. The loan interest rate is 1.5%, with a repayment condition of a 2-year grace period followed by 3 years of equal installment repayments. The loan funds must be used for purposes such as SME operations, facilities, and technology development.

Eligible applicants are SMEs and small business owners operating businesses with workplaces located in the district. However, excluded from loan support are businesses in the following sectors: ▲general entertainment bars and dance entertainment bars ▲finance, insurance, pension, real estate businesses (excluding real estate-related services) ▲gambling and luxury ▲amusement ▲speculative businesses, as well as companies that have received other fund loans established in Yongsan-gu within the last 5 years.

The application period is from the 26th of this month to September 6th. Applicants must bring the loan application form, business plan, bank and foundation requested documents, and apply in person at the Woori Bank Yongsan-gu Office Branch. However, if providing collateral through a credit guarantee, prior consultation must be conducted at the Seoul Credit Guarantee Foundation Yongsan Branch.

Loan recipients for the second half SME development fund will be finalized after review by the Fund Operation Committee, and funds are expected to be disbursed in October.

Additionally, the district has secured guarantee resources to alleviate financial difficulties of small business owners, including those affected by ‘Timeff’ store closures, and will support special credit guarantees allowing loans up to 9 billion KRW for the first time starting this second half of the year. Small business owners wishing to receive guarantee support can receive guarantee consultation and screening at the Seoul Credit Guarantee Foundation Yongsan Branch and then obtain a credit guarantee certificate.

District Mayor Park Hee-young said, “We hope this loan support will help stabilize the management of small and medium-sized business owners struggling with high inflation and high interest rates, leading to revitalization of the local economy.”

Meanwhile, the district is conducting relief consultations for companies affected by ‘Timeff’ store closures through free expert consultations at the expert consultation room on the 2nd floor of Yongsan-gu Office. Legal consultations are available every Tuesday and on the second Wednesday of each month, and tax consultations are available every Wednesday by prior appointment, all free of charge. Small business owners who find it difficult to visit in person can post inquiries on the ‘Expert Online Consultation’ section of the Yongsan-gu Office website to receive answers from lawyers or tax accountants.