Jongno-gu Provides 1.5% Low-Interest Loans to Small and Medium-Sized Merchants

Submit loan applications and business registration copies to the Job Economy Division by February 14... Support scale is 1.5 billion KRW with up to 200 million KRW per company.

[Asia Economy Reporter Park Jong-il] Jongno-gu (District Mayor Kim Young-jong) plans to provide loan support through the ‘2020 First Half Small and Medium Enterprise Development Fund’ to small and medium-sized business owners in the area, aiming to alleviate financial difficulties and stabilize management.

The loan targets are ▲small and medium-sized enterprises with factories located within the district’s jurisdiction and registered as factories ▲tenants of the startup incubation center operated by the district ▲small enterprises and small business owners as defined in Article 2 of the Act on the Protection and Support of Small Businesses ▲small enterprises and small business owners with their main office in Jongno-gu but registered factories in other regions, operating businesses recognized by the district mayor as promising and suitable for local characteristics.

The loan application period is until February 14. After consulting with Woori Bank Jongno-gu Office Branch and Seoul Credit Guarantee Foundation, applicants should submit the application documents to the district office’s Job and Economy Division.

The support scale is 1.5 billion KRW, with up to 200 million KRW per company, within 30% of the previous year’s sales.

Required documents include the loan application form, a copy of the business registration certificate, corporate registry copy, proof of business location, value-added tax standard certificates for the last three years, and employment insurance subscriber lists.

Optional documents include a copy of the factory registration certificate (only for factory-registered companies), resident registration abstract or employment insurance subscriber list (only if the representative or employees are residents of Jongno-gu), etc.

Applications are only accepted for purposes such as facility and operating funds, and technology development funds. Service industries such as bars, restaurants, real estate, and luxury entertainment businesses are excluded from loan eligibility.

Conditions include an interest rate of 1.5%, a one-year grace period, and equal installment repayments over four years. Loans are only available to companies with collateral capability (real estate or credit guarantee) according to bank credit regulations.

Loan amounts may be adjusted or applicants excluded based on the Operating Deliberation Committee’s review. If it is recognized that the fund is used contrary to the submitted business plan and purpose, the loan will be recalled.

Also, since the use of loan funds will be verified after the loan, applicants must clearly prepare a fund usage plan when applying.

For more details, contact the district office’s Job and Economy Division (☎2148-2263). For real estate-related preliminary consultations, contact Woori Bank Jongno-gu Office Branch (☎723-5038). For credit guarantee-related preliminary consultations, contact Seoul Credit Guarantee Foundation Jongno Branch (☎2174-4635).

Kim Young-jong, Mayor of Jongno-gu, stated, “We have launched the first half loan support to contribute to establishing an economic self-reliance foundation for small and medium-sized business owners and to help stabilize management.” He added, “We will revitalize the local economy and implement policies that carefully address the difficulties of small and medium-sized business owners in the district to make Jongno a city favorable for business.”

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