Within 1 Year of Startup: Up to 12 Million KRW per Low-Income Young Entrepreneur, Interest Rate 3.6%~4.5%
The Financial Services Commission announced on the 30th that starting from the 31st, low-income young entrepreneurs will also be eligible to use the Saessal Loan Youth (Haetsal Loan Youth) program as the support target is expanded.
Previously, Saessal Loan Youth was only provided to unemployed youth or young workers with less than one year of employment at small and medium-sized enterprises. With this new measure, young entrepreneurs within one year of starting their business can also benefit. The target group includes young entrepreneurs aged 19 to 34 with an annual income of 35 million KRW or less and who have started their business within one year as of the guarantee application date.
The loan limit is up to 3 million KRW per instance for general living expenses, and up to 9 million KRW per instance for specific purpose funds such as purchasing goods or rent. The total usage limit per person is 12 million KRW, and the interest rate, including the guarantee fee, ranges from 3.6% to 4.5%.
The Financial Services Commission plans to further reduce the interest burden of Saessal Loan Youth for socially vulnerable youth such as basic livelihood security recipients and near-poverty groups starting from the second quarter of next year. The government will support 1.6 percentage points of the bank interest through public funds, improving the loan to be available at an ultra-low interest rate in the 2% range.
Meanwhile, since its launch in 2020, Saessal Loan Youth has supplied approximately 403,000 cases amounting to 1.3197 trillion KRW as of the end of September this year. Loan applications can be made through the 'Seomin Geumyung Itda' app or by visiting the Integrated Support Center for Low-Income Finance.
A Financial Services Commission official said, "We have expanded the support target to help young people who are struggling to secure funds due to sustained high interest rates and delayed domestic demand recovery," adding, "We hope this will assist young entrepreneurs facing difficulties in securing operating expenses in the early stages of their startups."
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