Yangcheon-gu Provides 4 Billion KRW Loan Support to SMEs and Small Business Owners... Ultra-Low Interest Rate of 0.8% Per Year

Up to 300 Million KRW for Manufacturing, 80 Million KRW for Wholesale and Retail
Applications Accepted Until the 14th of This Month

Yangcheon-gu, Seoul (Mayor Lee Gi-jae) has decided to support a ‘Small and Medium Enterprise (SME) Development Fund’ worth 4 billion KRW annually to help SMEs and small business owners who are facing management difficulties due to the prolonged economic downturn, and is accepting applications until the 14th of this month.

This year, the total size of Yangcheon-gu’s SME Development Fund is 4 billion KRW. Manufacturing businesses can receive loans up to 300 million KRW, while wholesale and retail businesses and other industries can receive up to 80 million KRW. The repayment terms are a 2-year grace period followed by 3 years of equal installments. The loan interest rate is 0.8%, the lowest among Seoul’s autonomous districts, and will be applied temporarily until the end of this year to reduce the financial burden on SMEs and small business owners.

The support targets are SMEs and small business owners who have business establishments in Yangcheon-gu and have been registered for at least 6 months as of the announcement date (February 3). However, certain industries such as non-store retail businesses, tobacco wholesale and retail, restaurants, real estate, and finance, as well as companies that have already benefited as of the announcement date (either currently repaying or less than one year since repayment), are excluded from eligibility.

Businesses wishing to apply should prepare a loan application form, business plan, business registration certificate, national and local tax payment certificates, and documents verifying sales, and submit them in person to the Job and Economy Division office at the district office by the 14th of this month. After review by the Fund Management Committee, the final selected companies can receive loans through Woori Bank Yangcheon-gu Office Branch starting from the end of March. For more details, please refer to the announcement board on the district office website.

Meanwhile, the Yangcheon-gu SME Development Fund was first established in 1993 with a 1 billion KRW contribution from the district and has supported 1,131 companies with over 75 billion KRW until last year, contributing to alleviating the management difficulties of SMEs and small business owners in the region.

Mayor Lee Gi-jae said, “I hope this support will be of some help to the SMEs and small business owners in the region who are going through difficult times,” and added, “We will continue to actively discover and promote various support policies for the recovery and growth of the local economy.”