'Gwangyeok Seoul Sarang Gift Certificates' Issued Worth 75 Billion KRW
Policy Funds and Special Guarantees Supplied Worth 2.1 Trillion KRW
"Rapid Funding Supply in the First Half for Small Business Owners"
Seoul City has launched focused financial support from the beginning of the year to help small business owners overcome management crises caused by sluggish domestic demand and political turmoil. This reflects the policy stance of Seoul Mayor Oh Se-hoon, who aims to enable citizens to concentrate on their livelihoods, and has chosen to revitalize the local economy by restoring consumer sentiment first.
According to Seoul City on the 2nd, the city will issue 75 billion KRW worth of 'Metropolitan Seoul Love Gift Certificates' usable in all 25 autonomous districts starting from the 8th of this month. This amount is half of the planned 150 billion KRW for this year, and the Metropolitan Seoul Love Gift Certificates can be used at any Seoul Love Gift Certificate affiliated store regardless of the district.
The 'Metropolitan Seoul Love Gift Certificates' can be purchased at a 5% discount, up to 300,000 KRW per person per month, with a holding limit of 1 million KRW. They can be used within five years from the purchase date, and if purchased by cash (account transfer) and more than 60% of the certificate amount is used, the remaining balance can be refunded. Interest from small business owners in the 'Metropolitan Seoul Love Gift Certificates' is high due to the advantage of being usable throughout Seoul, reducing citizens' grocery price burdens, and increasing sales for small business owners.
Seoul City has already announced a large-scale support plan for small and medium-sized enterprises and small business owners. The focus is on concentrating policy fund support targeting vulnerable groups and promising small business owners, restructuring financial structures, and lowering interest rates to enhance practical effects. Specifically, a plan to supply policy funds and special guarantees totaling 2.1 trillion KRW has been established. This consists of 200 billion KRW in direct loans (fixed interest rate), 1.7 trillion KRW in commercial bank cooperative funds (variable interest rate with interest difference compensation), totaling 1.9 trillion KRW in policy funds, and 200 billion KRW in special guarantees equivalent to 'Safe Accounts,' a negative account system for livelihood-type small business owners.
By sector, 860 billion KRW is allocated for vulnerable small business owners such as low-credit and socially disadvantaged groups, 340 billion KRW for prepared startups and excellent company growth promotion, and 900 billion KRW for general small business owners. The scale of loan support this year has increased by 35 billion KRW compared to last year to ensure smooth funding for small and medium-sized enterprises and small business owners facing livelihood cliffs due to rising management costs and prolonged economic downturn.
In particular, a new 'Emergency Economic Recovery Fund' of 200 billion KRW has been established for small business owners. The support targets companies and small business owners whose sales have decreased by 10% or more compared to the previous quarter, half-year, or the same period last year. It compensates for an interest difference of 2.0% up to a maximum limit of 50 million KRW. Additionally, a 'Principal Repayment Deferral System' is operated for small business owners suffering from double hardships due to management difficulties and debt repayment. The support targets companies that received installment repayment loans from Seoul City's small business development funds before May 31 last year and apply during the application period (January 2 to June 30). They can defer principal repayment for up to six months from the application date.
The 'Small Business Support Project' announced last November will also be fully activated. The existing rapid dream fund (70 billion KRW) for low-credit borrowers (credit score 839 or below) will be expanded to include low-income and socially disadvantaged groups, and the emergency self-employed fund (85 billion KRW) support scale will be increased by 20 billion KRW compared to last year. The refinancing loan product, Hope Companion Fund (230 billion KRW), will continue to operate.
Seoul City plans to swiftly promote fund supply for small business owners in the first half of the year to reduce their financial burdens and contribute to revitalizing the livelihood economy. Mayor Oh also delivered a message on the last day of last year, stating, "The reason for politics to exist and its mission in this era is to enable citizens to focus on their livelihoods."
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