Jung-gu, Seoul to Provide 3 Billion Won in Loans to SMEs and Small Business Owners in Q1

Startups Less Than One Year Old Now Eligible for Support

On January 11, Jung-gu District in Seoul (District Mayor Kim Gilseong) announced that it will provide loans from the Small and Medium Business Promotion Fund in the first quarter of this year to stabilize the operations of local small business owners facing management difficulties. Starting this year, “newly established startups” that have been in business for less than one year will also be eligible for support.

View of Jung-gu Office. Courtesy of Jung-gu.

The total loan amount for this year is 8 billion won. The district plans to concentrate the disbursement in the first half of the year to further support the recovery of the local economy. In the first quarter, a total of 3 billion won will be provided, including 2 billion won for small and medium-sized business loans and 1 billion won for newly established startup loans.

The small and medium-sized business loan program is available to companies that have operated a business in Jung-gu for at least six months after registering their business. The loan limit is up to 50 million won per company, within half of the previous year’s sales, and up to 100 million won for manufacturing companies.

The newly launched “Jung-gu Newly Established Startup Loan Support” targets companies within one year of establishment. To help early-stage startups with weak sales bases and limited collateral settle stably, up to 40 million won per company will be provided.

Loan applications for the first quarter will be accepted until January 28, and funds may be requested for operating capital, facility investment, or technology investment. The loan interest rate is fixed at 1.5% per annum, with a repayment period of five years. Applicants may choose between a one-year grace period with equal installments over the following four years, or equal installments over five years.

For more details, contact the Urban Industry and Small Business Support Team at 02-3396-5593 or download the application form by searching for “Small and Medium Business Promotion Fund” on the Jung-gu website. The district will hold an operations review committee in February to finalize the recipients and loan amounts, after which loans will be provided following credit review by banks and guarantee institutions.