Geumcheon-gu supports small and medium-sized enterprises with up to 3 million KRW for participation fees in domestic and international exhibitions. Photo by Hong Kong Exhibition Booth
Seoul's autonomous districts will begin providing loan support to small and medium-sized enterprises (SMEs) facing financial difficulties starting in February.
In particular, Songpa-gu and Gangbuk-gu will offer low-interest loans to help alleviate tightened financial conditions.
Songpa-gu to Provide 12 Billion KRW in Loans to SMEs Throughout the Year
Up to 200 Million KRW per Company... Low-Interest Loans Available for Business Stabilization Funds (Operating and Facility Funds)
Songpa-gu (Mayor Seo Gang-seok) announced that starting in February, it will provide loan support totaling 12 billion KRW to SMEs experiencing financial difficulties.
The district has been operating a separate fund for SMEs since 1993 and expanded the fund size more than threefold through a business agreement with financial institutions in 2018. Last year, loans totaling 4.4 billion KRW were provided to 28 companies, and the district supported interest burden relief by providing up to 70,000 KRW in interest subsidy funds, striving to ease companies' interest burdens.
This year's loan support is divided into two types based on the support schedule and loan interest rates: ▲ the SME Development Fund offering low-interest loans at an annual rate of 1.5%, and ▲ the Cooperation Fund that subsidizes the interest rate difference.
The SME Development Fund can be applied for after prior consultation with banks starting February 3, and it is highly popular, with funds typically exhausted by mid-year due to the low 1.5% interest rate. Since rapid depletion is expected again this year, it is advantageous to apply early based on the timing of fund needs.
Cooperation Fund support is scheduled to be announced in the second half of this year. With a scale of 8 billion KRW, the district will support up to 2% of the interest costs incurred when companies borrow funds.
Eligible applicants are SMEs registered in Songpa-gu for more than six months with sales records and collateral capacity under bank credit regulations. Loans of up to 200 million KRW per company are available with a repayment plan of 2 years grace period and 3 years equal installment repayment.
For required documents, excluded industries, and other detailed information, please check the district website under ‘Notices and Announcements.’
Additionally, the district operates a principal repayment deferral system for companies facing double hardships due to business difficulties and debt repayment. Companies that borrowed from the SME Development Fund and have principal repayments due this year can defer principal repayment for up to one year. Seo Gang-seok, Mayor of Songpa-gu, stated, “Through low-interest loan support and repayment deferral, we aim to provide practical help to SMEs struggling with financing,” adding, “We will implement diverse support measures at the district level to help SMEs and small business owners, the backbone of the local economy, overcome these difficult times.”
Gangbuk-gu Announces First 2025 ‘SME Development Fund Loan Support’... Up to 150 Million KRW
Annual Interest Rate 1.5%, Maximum Limit 150 Million KRW... 1 Year Grace Period, 4 Years Equal Installment Repayment
Gangbuk-gu (Mayor Lee Soon-hee) announced that it will recruit the first round of applicants for the 2025 ‘SME Development Fund Loan Support Project’ from February 3 to February 14. The project offers loans up to 150 million KRW at an annual interest rate of 1.5% to SMEs and small business owners in the district.
The Gangbuk-gu SME Development Fund Loan Support Project is designed to foster local SMEs and small business owners by providing low-interest loans for facility and operating funds using the district’s own budget fund.
Eligible applicants are SMEs and small business owners registered in Gangbuk-gu who have collateral capacity under bank credit regulations (real estate or credit guarantees). Businesses registered for less than six months, as well as those in precious metals brokerage, pubs, and non-store retail businesses, are excluded from eligibility.
The district plans to accept applications three times this year (March, July, November), with each round providing 1 billion KRW in loan support, totaling 3 billion KRW for SMEs and small business owners this year. The loan limit is up to 150 million KRW with real estate collateral and up to 50 million KRW with credit guarantee collateral. Loans must be repaid with a 1-year grace period followed by 4 years of equal monthly installments.
Those wishing to apply should visit the Gangbuk-gu Regional Economy Division (7th floor, 1035 Hancheon-ro, Gangbuk-gu) with the loan application form, business registration certificate, local and national tax payment certificates, and VAT standard certificates between February 3 and 14. Lee Soon-hee, Mayor of Gangbuk-gu, said, “Gangbuk-gu supports the management stability of SMEs and small business owners by providing loans through this fund.”
Geumcheon-gu to Support Up to 3 Million KRW for Domestic and International Exhibition Participation Fees for SMEs
30 SMEs Located in Geumcheon-gu Selected, Up to 3 Million KRW per Company
Geumcheon-gu (Mayor Yoo Sung-hoon) will support participation fees for advanced industry exhibitions to help local SMEs develop domestic and international market channels.
The advanced industry exhibition participation fee support project will provide up to 3 million KRW per company to 30 companies planning to participate in domestic and international advanced industry exhibitions starting March this year.
Both domestic and international exhibitions related to advanced industries, including online and offline exhibitions, are eligible. Companies can use the support funds for costs such as setting up exclusive booths or procuring equipment for the exhibition.
SMEs with offices or factories located in Geumcheon-gu can apply. However, companies with overdue national or local taxes, those with 300 or more regular employees, subsidiaries of large corporations, or those receiving duplicate support from other institutions or autonomous districts are excluded.
Interested companies should download the required documents from the Geumcheon-gu website’s notice section and submit the completed forms via email by February 12. Yoo Sung-hoon, Mayor of Geumcheon-gu, said, “We hope companies seize opportunities for overseas expansion by receiving support for exhibition participation fees.”
Guro-gu to Hold SME and Small Business Support Project Briefing on February 4
From SME Policy Funds to Customized Support for Small Business Owners
Guro-gu announced that the ‘2025 SME and Small Business Support Project Briefing,’ hosted by the Seoul Regional Small and Medium Business Administration, will be held on February 4 from 2 PM to 5 PM at the district office auditorium.
The briefing will include participation from the Small and Medium Business Corporation, Small Enterprise and Market Service, Korea Technology Finance Corporation, and Korea Credit Guarantee Fund. It aims to explain various support projects to SMEs, small business owners, and traditional market merchants to prevent missing out on government benefits due to lack of information.
The district is enhancing understanding of policies and encouraging participation through this briefing. The event will be divided into two sessions, with practical staff introducing popular support projects on-site.
A one-on-one consultation desk staffed by practitioners will be available at the event to quickly resolve participants’ questions. The briefing is open for free participation on the day without prior registration. For more details, contact the district’s Regional Economy Division.
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