Songpa-gu Lowers SME Loan Interest Rates by 0.4%, Supports Loans at 1.5%

20 Million KRW Support for Acquiring Domestic and International Certification...The Only Seoul Autonomous District to Receive It

[Asia Economy Reporter Jong-il Park] Songpa-gu (Mayor Park Seong-su) will reduce the interest rate on the Small and Medium Enterprise (SME) Development Fund loans by 0.4% starting from the 3rd. Accordingly, the interest rate will be adjusted from the existing 1.9% to 1.5%.

Songpa-gu is doing this to support local SMEs struggling due to the prolonged economic recession.

Songpa-gu operates a 4 billion KRW SME Development Fund. Companies in Songpa-gu that have been registered for more than six months can borrow at an interest rate of 1.5%.

The loan limit is up to 200 million KRW per company, with a repayment period of 2 years grace and 3 years equal installment repayment. Loan applications can be submitted at any time.

If the SME Development Fund is fully utilized, companies can borrow 8 billion KRW in cooperative funds through an agreement between Songpa-gu and Woori Bank. However, Woori Bank’s cooperative fund loan support directly subsidizes up to 2% of the interest. This is Songpa-gu’s support measure to reduce interest burden by enabling SMEs to use funds at low interest rates.

Songpa-gu also recommends special credit guarantees in cooperation with the Seoul Credit Guarantee Foundation. With a recommendation from Songpa-gu Office, companies can receive a guarantee certificate up to 100 million KRW under relaxed screening criteria compared to general standards. This is also financial support for SMEs and small business owners lacking collateral.

In addition to loan support, Songpa-gu operates programs such as △support for acquiring excellent domestic and international certifications △support for participation in domestic and international exhibitions △youth employment internship programs △holding sales exhibitions for excellent SME products △free management consulting through village management instructors.

In particular, support for acquiring excellent domestic and international certifications is a system uniquely promoted among Seoul’s autonomous districts. Even companies with excellent technology often find it difficult to obtain necessary certifications due to lack of professional personnel and cost burdens. Songpa-gu supports up to 2 million KRW per company, with a total of 20 million KRW, covering testing fees, certification fees, and evaluation fees.

To expand sales channels for SMEs, companies participating in domestic and international exhibitions can receive up to 2.5 million KRW for booth rental fees. The total support amount was increased from 30 million KRW last year to 40 million KRW this year, reflecting corporate demand.

Regarding this, Songpa-gu explained that it provides a good opportunity for local companies to expand their sales channels by showcasing excellent products at domestic and international exhibitions.

Park Seong-su, Mayor of Songpa-gu, stated, “Active support is necessary for SMEs suffering severe operational difficulties due to the economic downturn and weakened consumer sentiment. We will spare no effort to implement practical policies that companies need and strive to create ‘Songpa, a good place for business.’”

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