Gangseo-gu Provides 16.2 Billion KRW Loan Support to SMEs and Small Business Owners

Gangseo-gu, Seoul (District Mayor Jin Gyo-hoon) signed a “Business Agreement for Loan Support for Small and Medium Enterprises (SMEs) and Small Business Owners” on the 26th at the district office’s main conference room with Woori Bank, Hana Bank, Shinhan Bank, and the Seoul Credit Guarantee Foundation.

On the 26th, Gangseo-gu, Seoul signed a "Business Agreement for Loan Support for Small and Medium Enterprises and Small Business Owners" with Woori Bank, Hana Bank, Shinhan Bank, and the Seoul Credit Guarantee Foundation. From the left: Kim Young-min, Head of Shinhan Bank Gangseo Headquarters; Jo Se-hyung, Institutional Group Leader of Woori Bank; Jin Gyo-hoon, District Mayor; Hong Kyung-taek, Regional Representative of Hana Bank Western Sales Headquarters; Park Jang-hyuk, Executive Director of Business Strategy Division at Seoul Credit Guarantee Foundation. Provided by Gangseo-gu.

According to the agreement, each institution will jointly contribute a total of 1.3 billion KRW to the Seoul Credit Guarantee Foundation. Gangseo-gu will contribute 200 million KRW, Woori Bank 700 million KRW, Hana Bank 300 million KRW, and Shinhan Bank 100 million KRW. The Seoul Credit Guarantee Foundation will provide credit guarantees amounting to 16.25 billion KRW, which is 12.5 times the contribution amount of 1.3 billion KRW.

Through this agreement, the district will promote the “Hope Finance Special Credit Guarantee Support Project” to help SMEs and small business owners located in Gangseo-gu overcome management difficulties. This project supports receiving operating funds at interest rates lower than market rates. The total guarantee support scale is 16.25 billion KRW, with up to 50 million KRW available per business. Certain industries, such as luxury and entertainment sectors, are excluded.

The loan interest rate is calculated by adding a margin to the base rate and then subtracting Seoul City’s interest support of 1.8%. As of the 4th of this month, interest rates of 2.75% to 2.95% will apply for four years. Repayment can be made in equal installments over four years after a one-year grace period.

Applications will be accepted starting from the 1st of next month at Woori, Hana, and Shinhan Banks. The branches handling the loans for each bank can be checked on the Gangseo-gu Office website (Gangseo News - Notices/News).

District Mayor Jin Gyo-hoon said, “When the economy slows down, SMEs and small business owners suffer the most, and their difficulties inevitably increase. We will continue to implement various policies to stabilize the livelihood economy so that SMEs and small business owners facing management crises can find a way out.”