Seongbuk-gu Provides 30 Billion KRW Low-Interest Special Loans to Small Business Owners

After the special loan support agreement for small business owners, Lee Seung-ro, Mayor of Seongbuk-gu (seventh from the left), along with representatives from Woori Bank and Seoul Credit Guarantee Foundation, are taking a commemorative photo. Provided by Seongbuk-gu.

Seongbuk-gu, Seoul (Mayor Lee Seung-ro) signed a "Special Loan Support Agreement for Small Business Owners" on the 22nd with Woori Bank and the Seoul Credit Guarantee Foundation to strengthen loans aimed at alleviating financial difficulties faced by local small business owners.

Through this agreement, the district will contribute 100 million KRW, Woori Bank will contribute 2.3 billion KRW, and a special loan of approximately 30 billion KRW will be provided through guarantees from the Seoul Credit Guarantee Foundation. Seongbuk-gu expects this to be a significant help to small and medium-sized enterprises and small business owners experiencing financial difficulties due to the prolonged economic downturn.

Last year, the district executed loans totaling about 20 billion KRW, benefiting 463 small business owners. This year, the guarantee fund has been increased by 10 billion KRW to 30 billion KRW to enable more small business owners to quickly receive stable financial support.

The support targets small business owners who have operated a business registered in Seongbuk-gu for more than three months and have a personal credit score of 595 or higher. The loan limit is up to 50 million KRW per business, including existing guarantees. The loan term is a 1-year grace period followed by 4 years of equal principal repayments, with an interest rate of approximately 2.9% per annum on a variable rate basis.

However, businesses that have issued a guarantee certificate from the Seoul Credit Guarantee Foundation within the past year and still have outstanding loan balances, as well as certain industries such as entertainment bars, are excluded. Corporations or businesses with co-representatives must apply separately through the Seoul Credit Guarantee Foundation.

The application period starts on the 3rd of next month. Applications can be submitted in person at two Woori Bank branches (Seongbuk-gu Office Branch, Dongsomun Financial Center) and the Seoul Credit Guarantee Foundation Seongbuk Branch. For application documents, inquiries can be made through the Seongbuk-gu Office website, the respective Woori Bank branches, or the Seoul Credit Guarantee Foundation Seongbuk Branch.

Mayor Lee Seung-ro stated, "We will continue to prepare practical support measures that small business owners in Seongbuk-gu, who are struggling with high interest rates and high prices, can truly feel to alleviate their management difficulties."