Dongjak-gu, 34 Billion KRW Financial Support for Small and Medium-Sized Businesses

Expansion of Loan Scale and Support Eligibility

Dongjak-gu, Seoul (Mayor Park Il-ha) has strengthened financial support for small and medium-sized enterprises (SMEs) in the district that are experiencing management crises due to sluggish domestic demand and political turmoil.

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

According to Dongjak-gu on the 21st, the district will establish 4 billion KRW for the ‘SME Development Fund,’ a direct loan program, and 30 billion KRW for the ‘Interest-Free Special Guarantee for Small Business Owners,’ a bank cooperation project. The SME Development Fund has been expanded by 1 billion KRW compared to last year, with 3 billion KRW provided in the first half and 1 billion KRW in the second half of the year.

Small and medium-sized enterprises and small business owners with business locations in Dongjak-gu who have been operating for more than three months and have collateral capability under bank credit regulations, such as real estate and credit guarantees, are eligible to apply. With the district easing the previous six-month operation requirement to half that period, the number of applicants and beneficiaries is expected to increase significantly.

The loan interest rate has also been reduced by 0.5% to an annual rate of 1%, greatly alleviating the burden of interest, and repayment of principal due this year can be deferred for up to six months.

Additionally, the district plans to expand the guarantee fund for the ‘Interest-Free Special Guarantee for Small Business Owners,’ jointly funded by the SME Development Fund and commercial banks. The district aims to raise 30 billion KRW by increasing approximately 3.8 billion KRW compared to the previous year and will pursue agreements with commercial banks next month.

Small and medium-sized enterprises and small business owners with business locations in Dongjak-gu can receive up to 70 million KRW interest-free for the first year. For more details regarding financial support, please contact the Economic Policy Division of Dongjak-gu Office.

Mayor Park Il-ha stated, “We have strengthened low-interest and interest-free loan support to stabilize the management of SMEs and small business owners struggling with high inflation, high interest rates, and high exchange rates,” adding, “We will continue to make every effort to revitalize the local economy.”