Seocho-gu Provides 13 Billion KRW Loan Support to Foster Small Businesses and SMEs

400 million KRW SME Development Fund, 1.8% Annual Interest, Up to 200 million KRW per Company, Q1 Applications Accepted Until February 28... 900 million KRW for Startup and Operating Funds, Special Credit Guarantee up to 50 million KRW for Small Business Owners with Insufficient Collateral, Ongoing Support

[Asia Economy Reporter Jong-il Park] Seocho-gu (Mayor Eunhee Cho) has finalized the scale of the ‘2020 Small and Medium Enterprise (SME) Development Fund’ at 13 billion KRW to help alleviate financial difficulties and stabilize management for SMEs and small business owners struggling due to the economic downturn.

This year, the district’s SME development fund consists of ‘4 billion KRW from the SME Development Fund’ and ‘9 billion KRW for Small Business Startup and Operating Funds.’ The support targets manufacturing companies registered in Seocho-gu as of the application date or small business owners and SMEs whose main office (headquarters) is located in Seocho-gu.

First, the loan interest rate for the ‘SME Development Fund’ has been lowered by 0.2% from the previous year (2.0%) to 1.8%, reducing the interest burden on SMEs. Loan conditions allow up to 200 million KRW per company for facility funds, operating funds, and technology development funds, with a 1-year grace period followed by 3 years of equal installment repayments. However, companies currently repaying or within the repayment period of a previous Seocho-gu SME Development Fund loan are excluded.

Companies wishing to apply for the ‘SME Development Fund’ loan must submit an application form and related documents to the Seocho-gu Office’s Regional Economy Division by February 28 after prior review with banks and credit guarantee institutions to assess financial status and creditworthiness. Submitted loan applications will be reviewed by the SME Development Fund Operation Deliberation Committee to decide on support eligibility.

Additionally, small-scale self-employed individuals and small business owners lacking collateral can use the ‘Small Business Startup and Operating Funds.’ The district has signed a business agreement on credit guarantee support with the Seoul Credit Guarantee Foundation and Woori Bank, providing guarantees up to 50 million KRW under the agreement. Loans can be obtained without collateral and at low interest rates, with credit guarantees issued by the Seoul Credit Guarantee Foundation, under conditions of a 1 (or 2) year grace period and 3 (or 4) years repayment.

For swift and efficient guarantee support, the Seoul Credit Guarantee Foundation handles everything from preliminary consultation to screening and loan issuance in a one-stop process for the ‘Small Business Startup and Operating Funds.’

For detailed consultation, contact the Seoul Credit Guarantee Foundation Isuji Branch at ☏2174-4424~9.

Seocho-gu Mayor Eunhee Cho stated, “Through this funding support, we expect to stabilize the management of local SMEs and small business owners and further create job opportunities.”

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