Dongjak District Launches On-Site Applications for Interest-Free Loans for Small Businesses

Rotating Service at 15 Community Centers Until July

Dongjak District in Seoul is launching an on-site one-stop service to make it easier for busy small business owners and SMEs to conveniently apply for interest-free special guarantee loans.

Park Ilha, Mayor of Dongjak District (fourth from the left in the photo), is taking a commemorative photo with branch managers of Kookmin, Woori, Hana, and Shinhan Banks and the chairman of the Seoul Credit Guarantee Foundation at the 'Dongjak District Small Business Interest-Free Special Guarantee Loan Support Agreement Ceremony' held last March. Provided by Dongjak District.

This service is part of the "Small Business Interest-Free Special Guarantee Loan Support Project," which Dongjak District has been promoting since March in partnership with the Seoul Credit Guarantee Foundation and four major commercial banks: Kookmin, Woori, Hana, and Shinhan. The total loan program amounts to 30 billion KRW, with up to 70 million KRW available per business. The repayment method involves a one-year grace period followed by equal installment payments of the principal over four years. During the first year, the loans are interest-free.

From May to July, the district will operate a rotating reception desk at each of the 15 local community centers, holding one session per center. The service will provide loan consultations and accept applications, while also offering information on related programs such as Good Price Stores, Yellow Umbrella Mutual Aid, and support for small business owners who have closed their businesses. Depending on the location, operating hours are either 9:00?11:30 a.m. or 2:00?5:00 p.m. For detailed schedules, contact the district’s Economic Policy Division at 02-820-1180.

Meanwhile, the district plans to raise a total of 100 billion KRW in interest-free loan funds from 2023 to 2026. Over the past two years, it has provided about 48.4 billion KRW in interest-free loans to a total of 1,353 businesses.

Park Ilha, Mayor of Dongjak District, stated, "With the on-site application service, small business owners will be able to apply for loans more easily," adding, "We will continue to support the recovery of the local economy through practical financial assistance."