Seoul City Provides 6 Billion Won Financial Support to Social Enterprises

Support for Enterprises Revitalizing the Local Economy
Loan Limits Increased and Interest Rates Lowered in Consideration of High Inflation

The Seoul Metropolitan Government will provide financial support to social economy enterprises that offer jobs to vulnerable groups or contribute to revitalizing the local economy.

According to Seoul City on the 13th, starting from the 14th, the city will lend funds worth 6 billion KRW to social economy enterprises and social ventures located in Seoul, classified as small and medium-sized enterprises, to ensure stable business operations.

Yonhap News

In particular, this year, to ease the burden on companies struggling due to prolonged high inflation and high interest rates, the loan limit per company will be increased from 300 million KRW to 400 million KRW. The interest rate has also been lowered from 2% to 1.75%.

The loan support targets are social economy enterprises located in Seoul that qualify as small and medium-sized enterprises (including preliminary social enterprises, cooperatives, village enterprises, and self-support enterprises) and social ventures (companies regulated under the "Ordinance on Support for Social Ventures in Seoul Special City"). Businesses in restricted sectors such as entertainment, gambling, leisure, speculation, and companies unable to receive credit guarantees are excluded from support.

If a company is currently receiving and repaying loans through the Seoul Small and Medium Business Promotion Fund’s Social Economy Account (Social Investment Fund) loan executing agency, new loans can be granted within the range after deducting the outstanding loan balance as of the application date.

The loan amount per company and eligibility will be finally determined after review by the Seoul Credit Guarantee Foundation based on internal evaluation criteria such as company credit rating information and national/local tax delinquency status. The loan will be provided under the condition of a one-year grace period followed by four years of equal principal repayments. Kim Myung-seon, Director of the Fair Economy Division at Seoul City, said, "This loan support aims to help social economy enterprises overcome difficulties in financing and enhance their competitiveness in the long term," adding, "We will continue to prepare various policies to enable companies realizing social value to achieve sustainable growth."

Meanwhile, applications can be made non-face-to-face without visiting in person starting from the 14th via the Seoul Credit Guarantee Foundation mobile app. If non-face-to-face application is difficult, applicants can make a reservation through the mobile app or the Seoul Credit Guarantee Foundation website and visit the branch on the reserved date.