Dongjak-gu Provides Interest-Free Loans to Small and Medium Enterprises and Small Business Owners

Up to 70 Million KRW per Company with '1 Year Interest-Free'

Dongjak-gu, Seoul (Mayor Park Il-ha) is providing interest-free special guarantee loans to small and medium-sized enterprises (SMEs) and small business owners in the district who are experiencing management difficulties due to the economic downturn.

To this end, the district signed a business agreement last April with the Seoul Credit Guarantee Foundation and four major commercial banks, jointly contributing 2.1 billion KRW to create a 26.3 billion KRW fund for interest-free special guarantees for small business owners.

Park Il-ha, Mayor of Dongjak-gu. Provided by Dongjak-gu.

According to the district, 1 billion KRW has been allocated from the SME Development Fund to cover loan interest for one year, enabling small business owners to benefit from interest-free loans.

In particular, amid the increased financial burden on small business owners due to the recent economic crisis following the impeachment political situation, this interest-free special guarantee loan support is expected to greatly help stabilize management.

Support is provided interest-free for the first year, up to a maximum of 70 million KRW, and any SME or small business owner with a business location in Dongjak-gu can apply. Interested businesses can bring required documents such as business registration certificates and sales proof to the partner banks for consultation and application. For inquiries about partner banks in the district and other details, contact the Economic Policy Division of Dongjak-gu Office.

Additionally, this year the district is implementing the ‘SME Development Fund Loan Support,’ providing 3 billion KRW in funds at a low interest rate of 1.5% or less annually, rolling up its sleeves to revive the local economy.

Next year, the district plans to continue various policies to restore the local economy, including interest-free and low-interest loan support for SMEs and small business owners, as well as issuing Dongjak Love Gift Certificates worth a total of 30 billion KRW annually.

Mayor Park Il-ha said, “Through interest-free and low-interest loan support, we will practically ease the management burdens of SMEs and small business owners struggling with the severe economic downturn,” adding, “We will continue to make multifaceted efforts to revitalize the local economy.”