Gangbuk-gu Supports Low-Interest Loans from SME Development Fund... Up to 150 Million KRW

Annual Interest Rate of 1.5%, One-Year Grace Period, Four-Year Equal Installment Repayment
Applications Accepted Until the 14th of This Month

Gangbuk-gu, Seoul (Mayor Lee Soon-hee) is recruiting the first round of applicants for 2025 by the 14th of this month for the ‘Small and Medium Enterprise Development Fund Loan Support Project,’ which provides loans of up to 150 million KRW at an annual interest rate of 1.5% to small and medium-sized enterprises and small business owners in the area.

A view of Gangbuk District Office. Provided by Gangbuk District Office.

The ‘Gangbuk-gu Small and Medium Enterprise Development Fund Loan Support Project’ is a program that supports local small and medium-sized enterprises and small business owners by providing loans for facilities and operating funds at low interest rates using the district’s own budget fund.

Eligible borrowers are small and medium-sized enterprises and small business owners registered in Gangbuk-gu, who must have collateral capacity (real estate, credit guarantee) according to bank credit regulations. Businesses registered for less than six months or those engaged in precious metal brokerage, pubs, or non-store retail businesses are excluded from eligibility.

The district plans to accept applications three times this year (March, July, November), with a loan support scale of 1 billion KRW per round, totaling 3 billion KRW in loans to small and medium-sized enterprises 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 a credit guarantee certificate. The loan must be repaid in equal monthly installments over four years after a one-year grace period.

Applicants wishing to receive loan support should visit the Regional Economy Division (Gangbuk-gu Hancheon-ro 1035, 7th floor) with the loan application form, business registration certificate, local tax (national tax) payment certificate, and value-added tax standard certificate between the 3rd and 14th of this month.

However, before applying, applicants must visit Shinhan Bank Gangbuk-gu Office Branch (Gangbuk-gu Dobong-ro 89-gil 13, 1st floor of Gangbuk-gu Office) for prior consultation and to confirm the collateral appraisal amount. The collateral appraisal deadline is the 14th of this month.

If the number of applicants exceeds the loan scale, priority will be given to companies recognized as promising, such as those selected as Gangbuk-gu specialized enterprises, manufacturers, companies designated as key management targets under Article 11, Paragraph 1 of the 「Act on Emergency Preparedness」, exporters, venture companies or promising small and medium enterprises, companies led by youth as defined in Article 2, Paragraph 1 of the 「Seoul Gangbuk-gu Youth Basic Ordinance」, disabled enterprises (as defined in Article 2, Paragraph 2 of the 「Act on Promotion of Disabled Enterprises」), low-income supplementary job providers, and women-owned enterprises (as defined in Article 2, Paragraph 1 of the 「Act on Support for Women-owned Enterprises」).

The final decision on support will be made through the review by the Gangbuk-gu Small and Medium Enterprise Development Fund Operation Deliberation Committee. Depending on the review results, the loan amount may be adjusted within the collateral appraisal amount or the applicant may be excluded from the loan target. For detailed information on required documents, loan conditions, and other matters, please check the Gangbuk-gu website.

Mayor Lee Soon-hee said, “Gangbuk-gu provides loans through the fund to help stabilize the management of small and medium business owners,” and added, “We will actively promote various support projects to establish a foundation that can strengthen the competitiveness of small and medium enterprises and small business owners in the future.”