Gwangjin District Offers 2.3 Billion KRW SME Development Fund Loans at 1.5% Fixed Annual Rate

Applications Must Be Submitted in Person to the District Office Local Economy Division by August 19

Gwangjin District in Seoul (District Mayor: Kim Kyungho) will provide approximately 2.3 billion KRW in loans through the '2025 Second Half Small and Medium Enterprise Development Fund' to support the livelihood stability of local SMEs and small business owners. In response to the ongoing economic downturn and the difficulties faced by merchants, the loan application period has been moved up by about a month compared to previous years.

Exterior view of Gwangjin District Office. Provided by Gwangjin District.

Eligible applicants are SMEs and small business owners who have been registered in Gwangjin District for at least six months. Applicants must meet collateral requirements as per bank lending regulations, such as real estate collateral or a credit guarantee certificate.

The loan terms include a fixed annual interest rate of 1.5%. Individual business owners may borrow between 30 million KRW and up to 100 million KRW, while corporate business owners may borrow up to 200 million KRW. Repayment is structured as a three-year equal installment plan following a one-year grace period, and the funds must be used for operating capital, facility investment, or technology development.

Applications must be submitted by August 19. Applicants should visit in person with documents such as the loan application form, business plan, and a copy of their business registration certificate. The following are not eligible for support: those who have already received loans from the Small and Medium Enterprise Development Fund or the Gwangjin-type Special Guarantee Loan; businesses that are currently suspended or closed; those in arrears on national or local taxes; and businesses in finance, insurance, nightlife establishments, or other speculative industries. For more details, contact the Gwangjin District Office Local Economy Division at 02-450-7386.

Meanwhile, since the launch of the 8th popularly elected administration, Gwangjin District has supported a total of 14.8 billion KRW in Small and Medium Enterprise Development Fund loans to 131 businesses, continuing its efforts to foster and develop local SMEs and small business owners.

Kim Kyungho, Mayor of Gwangjin District, stated, "As the economic downturn persists, we have advanced the support schedule so that SMEs and small business owners facing difficulties can overcome their challenges," adding, "With the Chuseok holiday approaching, we hope this will provide practical help in alleviating financial difficulties."