Seongdong District Offers 25 Billion Won Special Credit Guarantee Loans to SMEs and Small Business Owners

Up to 1.5% of Loan Interest Subsidized by the District Office

Seongdong District in Seoul (District Mayor: Jeong Wonoh) will provide a total of 25 billion won in “Seongdong-type Special Credit Guarantee Loans” to support local small and medium-sized enterprises (SMEs) and small business owners facing management difficulties due to high interest rates and the economic downturn.

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

This program is designed to assist self-employed individuals who have difficulty obtaining loans from regular financial institutions due to insufficient credit or collateral. The initiative is being carried out through an agreement between the district office, banks, and the Seoul Credit Guarantee Foundation. With the guarantee provided by the Seoul Credit Guarantee Foundation, businesses can receive loans without the need for additional collateral or guarantors.

Eligible applicants are SMEs and small business owners who have been operating for at least six months after business registration within Seongdong District and who do not have any outstanding guarantees with the Seoul Credit Guarantee Foundation. However, businesses that are closed or suspended, individuals with bad credit, and those in restricted or prohibited industries are not eligible to apply.

The total guarantee amount is 25 billion won, and applications will be accepted until the funds are exhausted. The maximum loan amount per applicant is 50 million won, and only the credit guarantee certificate from the Seoul Credit Guarantee Foundation is accepted as collateral. In addition, the district, together with partner banks, will subsidize loan interest rates by up to 1.5%, enabling businesses to access loans at lower interest rates. The repayment terms require a one-year grace period, followed by equal installment payments over three years.

To apply for the loan, applicants should prepare the required documents, including the business owner’s ID, a copy of the business registration certificate, and VAT filing documents, and consult in advance at the Seongdong Branch of the Seoul Credit Guarantee Foundation before submitting their application. Further details can be found in the announcements section of the Seongdong District Office website.

Jeong Wonoh, Mayor of Seongdong District, stated, “Local businesses are facing hardships as the complex crisis of economic downturn and high interest rates continues,” adding, “I hope that the ‘Seongdong-type Special Credit Guarantee Loan’ support program will serve as a practical measure to protect local businesses and contribute to stable business management.”

This content was produced with the assistance of AI translation services.