Seocho-gu Provides Interest Support for Low-Interest Loans to Small and Medium-Sized Businesses

Annual Loans of 6 Billion KRW at 0.8% Interest Rate
Additional Loans of 10 Billion KRW with 3% Interest Support

Seocho-gu, Seoul (Mayor Jeon Seong-su) announced on the 31st that it will strengthen loan interest support through the Small and Medium Business Development Fund and partner banks (all Shinhan Bank branches in Seocho-gu, Woori Bank Yangjae Nam Financial Center) to help local small and medium-sized enterprises (SMEs) and small business owners who are struggling due to rising interest rates and economic recession manage their funds stably.

Seocho District Office building. Provided by Seocho District Office.

The scale of the 'Small and Medium Business Development Fund Loan Support' in 2025 is set at a total of 6 billion KRW, with applications starting from February 3rd. Loans will be provided in two phases, with 3 billion KRW each in the first and second halves of the year. Eligible applicants are SMEs or small business owners with their main office located in Seocho-gu, and each business can receive a loan of up to 100 million KRW at an annual interest rate of 0.8%.

The loan period is 5 years, with options to choose either a 1-year grace period followed by 4 years of repayment or a 2-year grace period followed by 3 years of equal installment repayments. However, businesses that have already taken out this loan and are in repayment, those that are temporarily closed or have ceased operations, those with overdue local taxes or fines, and businesses in inappropriate industries such as entertainment and luxury sectors are excluded from support.

Meanwhile, Seocho-gu also operates the 'Commercial Bank Cooperative Fund Loan Interest Support' program. The district office has signed agreements with Shinhan Bank and Woori Bank to provide an additional 10 billion KRW in bank funds, and the district supports up to 3% per annum of the loan interest. Loans through this commercial bank cooperative fund can be up to 200 million KRW per business, with a 4-year loan period consisting of a 1-year grace period followed by 3 years of equal installment repayments.

To apply for the 'Small and Medium Business Development Fund Loan Support' and 'Commercial Bank Cooperative Fund Loan Interest Support,' applicants need to prepare the required documents and visit the respective banks. Applications can be submitted after consultation to confirm the collateral capacity of the individual or business. Detailed information is available on the Seocho-gu Office website.

Mayor Jeon Seong-su stated, “We have prepared various financial support measures to provide practical help to small business owners struggling with prolonged economic downturn and rising interest rates. We will continue to make efforts to ensure that this financial support significantly helps alleviate funding difficulties and stabilize management for small business owners.”