Annual 1.5% Low-Interest Loan for SMEs and Small Business Owners in the District
Eunpyeong-gu, Seoul (District Mayor Kim Mi-kyung) is implementing the ‘2025 Small and Medium Enterprise Development Fund Loan Support’ to help stabilize the management of small and medium-sized enterprises (SMEs) and small business owners in the district amid prolonged domestic demand stagnation and consumption contraction caused by political turmoil.
Starting this year, the district plans to expand support by including the restaurant industry, which was previously excluded from the support targets, and increasing the loan limit per business. The total loan support amount for this year is 5 billion KRW, with up to 2 billion KRW allocated for the restaurant industry.
The support targets are SMEs and small business owners who have business establishments registered in Eunpyeong-gu, and the support amount varies depending on the size and industry of the business. SMEs can receive up to 200 million KRW, small business owners up to 70 million KRW, and the restaurant industry up to 50 million KRW.
Industries such as lodging, bars, tobacco and liquor wholesale, real estate, finance and insurance, and other sectors that promote luxury, indulgence, and speculation are excluded from the support. Applications can be submitted at the beginning of each month until the loan funds are exhausted, and applications for the restaurant industry can be submitted starting from the 9th of this month.
To apply for the loan, applicants must have collateral capability according to bank credit regulations, such as real estate collateral or credit guarantees. Businesses wishing to apply must consult on collateral with the Seoul Credit Guarantee Foundation Eunpyeong Branch or Shinhan Bank Eunpyeong-gu Office Branch.
Applicants should fill out the application form posted on the Eunpyeong-gu website announcement and visit the Eunpyeong-gu Office Job and Economy Division with other supporting documents to apply. The loan interest rate is 1.5% per annum, with repayment conditions of either a 2-year grace period followed by 2 years of equal installments or a 1-year grace period followed by 3 years of equal installments.
District Mayor Kim Mi-kyung stated, “This loan support now includes assistance for the restaurant industry, which constitutes a large portion of small business owners in the district, and the loan limit per business has increased, so we expect small business owners facing economic difficulties to receive practical support. We will continue to prepare various support measures to stabilize the management of small business owners in the district.”
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