Gwanak District to Provide 1.6 Billion KRW in Loans to SMEs and Small Business Owners

Low-Interest Loans at 1.5% Annual Rate
Applications Open from August 25
Support for SMEs and Small Business Owners in Gwanak District
Relief for Financial Struggles Amid High Interest Rates and Inflation

Gwanak District in Seoul (District Mayor Park Junhee) will launch the '2025 Second Half SME Development Fund Loan Support' starting August 25, to help resolve funding difficulties faced by small and medium-sized enterprises (SMEs) and small business owners.

Gwanak District Office building. Provided by Gwanak District Office.

This support program aims to provide relief and stable management assistance to local businesses and self-employed individuals struggling with high interest rates and inflation. The total loan amount for the second half of the year is 1.6 billion KRW, and an annual low interest rate of 1.5% will be applied, significantly reducing the financial burden.

Eligible applicants are SMEs and small business owners who have been registered in Gwanak District for at least six months as of the loan application date and possess real estate or credit collateral capability. However, businesses currently repaying fund loans, as well as those in the finance, real estate, lodging, entertainment, or gambling industries, are excluded from support.

The loan limit is up to 100 million KRW for SMEs and up to 50 million KRW for small business owners, with a repayment schedule of a two-year grace period followed by three years of equal installment payments. The funds can be used for both operating and facility capital.

Businesses wishing to apply must receive consultation and collateral assessment at the Woori Bank Gwanak District Office branch, then submit a loan application form, business plan, and a copy of their business registration certificate. For credit collateral applications, additional procedures may be required through the Seoul Credit Guarantee Foundation's Gwanak branch.

Since its establishment in 1993, the Gwanak District SME Development Fund has supported a total of 55.6 billion KRW in loans to 845 businesses, serving as a pillar for local business growth.

Park Junhee, Mayor of Gwanak District, stated, "I hope that SMEs and small business owners struggling due to the economic downturn will be able to establish a stable management foundation through this loan support," adding, "We will continue to pursue a variety of support policies to do our utmost for the revitalization of the local economy."