Yongsan-gu Provides 2 Billion KRW Loan Support for 'Youth Enterprises' in 2020

Published 15 Jan.2020 07:24(KST)

Annual interest rate 1.2%, 1-year grace period with 4-year equal installment repayment... Up to 100 million KRW per company... Support for business stabilization and facility funds

Yongsan-gu Provides 2 Billion KRW Loan Support for 'Youth Enterprises' in 2020

[Asia Economy Reporter Jongil Park] Yongsan-gu (Mayor Seongjang Hyun) will provide loan support worth 2 billion KRW this year for youth enterprises.

The district started accepting loan applications on the 15th. The project period lasts until funds are exhausted, and the eligible applicants are youth aged 39 or younger who have been running a business in Yongsan-gu and have resided there for more than one year as of the application date.

The loan conditions are an annual interest rate of 1.2%, with a 1-year grace period and 4 years of equal installment repayments. Support is provided up to 100 million KRW per applicant (50 million KRW for small business owners). The funds can be used for business stabilization funds, facility funds, rental deposit, etc. However, general entertainment restaurants, dance entertainment restaurants, and other gambling facility management and operation businesses are not eligible for support.

Applications can be submitted at the Shinhan Bank Yongsan-gu Office branch’s One-Stop Service counter for the Job Fund (☎793-3805). Applicants must prepare a loan application form, business plan, and resident registration abstract. Related forms can be downloaded from the district website under ‘District News (Yongsan-gu Job Fund)’.

The district holds a ‘Job Fund Operation Deliberation Committee’ around the 20th of each month for applicants from the previous month (limited to those with real estate collateral and credit guarantee issuance) to select loan recipients. If necessary, priority will be given to disabled persons, women-owned businesses, and promising small and medium enterprises.

Loans are disbursed around the 30th of the month following the application date.

The district enacted and promulgated the ‘Ordinance on the Establishment and Operation of the Yongsan-gu Job Fund, Seoul Special City’ in 2018. Ahead of the original plan (2022), it will complete the establishment of a 11 billion KRW fund by the first half of this year.

The youth enterprise loan is based on Article 13 (Loans for Youth Startups, etc.) of the ordinance. At the end of last year, the district recruited loan applicants for the first time and provided loans worth 400 million KRW to 12 local businesses including Inovision Korea, Domo, and Sowol Restaurant.

Mayor Seongjang Hyun of Yongsan-gu said, “Many youth enterprises are struggling due to the economic downturn and lack of funds. Utilizing the district’s job fund, we are providing loans at the lowest interest rates nationwide, which will offer considerable help to them.”

In addition to youth enterprise loans, the district plans to operate the Youth 1st Street Center (youth startup space), youth employment special lectures and company exploration groups, and workplace experience programs this year to enhance youth employment and startup capabilities.