Jungnang-gu Food Sanitation Business Facility Improvement Fund and Loan Support

Loan support of 250 million KRW for facility improvement and development funds... Submit required documents and visit Jungnang-gu Health Center Hygiene Department anytime... Loan interest rates 1-2% per year, lower than banks, reducing interest burden and improving food hygiene standards

[Asia Economy Reporter Jongil Park] Jungnang-gu (Mayor Ryu Kyung-gi) is providing loans for facility improvement funds and fostering funds for model restaurants to enhance hygiene levels and ensure stable operation of food hygiene businesses in the area.

The total loan amount is 250 million KRW.

The loan amount for the ‘facility improvement fund’ is up to 80% of the total cost required for business facility improvements, and the loan must be used solely for the loan purpose.

The ‘facility improvement fund’ support targets general and casual restaurants, bakeries, consigned catering businesses, and food manufacturing businesses within Jungnang-gu that require improvements to business facilities and restrooms, and applicants must be registered or licensed operators.

The loan limit is up to 100 million KRW per business for general and casual restaurants, bakeries, and consigned catering businesses, and up to 800 million KRW per business for food manufacturing businesses (limited within the total loan amount). For restrooms in food service businesses, the limit is up to 20 million KRW per business.

The ‘fostering fund’ is available to operators of businesses designated as model restaurants, who can apply for loans up to 50 million KRW needed for model restaurant operation and business facility improvements.

This fund is used for model restaurant operation and business facility improvements. However, operators of food service businesses primarily selling alcoholic beverages such as entertainment bars, karaoke bars, pubs, and sojubangs, as well as those currently repaying loans from the Food Promotion Fund, are excluded. Nonetheless, restroom facility improvement funds are not subject to these exclusions.

Additionally, collateral capability according to bank credit regulations is required. Small businesses lacking sufficient collateral or credit guarantees at the time of loan application can obtain a credit guarantee certificate from the Seoul Credit Guarantee Foundation and submit it to the bank.

Businesses wishing to apply for loans should prepare required documents such as the loan application form, business plan, business execution pledge, copy of business registration certificate, and copy of business license, and visit the Hygiene Division of Jungnang-gu Public Health Center to apply. Related forms can be found on the Jungnang-gu Office website (Administrative Information → Administrative Information Disclosure → Administrative Information Publication), and applications can be submitted year-round.

The Food Promotion Fund offers loan interest rates of 1-2% per annum, which is lower than banks, so it is expected to significantly reduce the loan interest burden for local food hygiene businesses.

If the loan for facility improvement funds is received but the business facilities are not improved or the funds are used for purposes other than the loan purpose, in violation of Article 7 of the Jungnang-gu Food Promotion Fund Ordinance Enforcement Rules, the loan must be repaid early.

For further inquiries, contact the Hygiene Division of Jungnang-gu Public Health Center at ☎2094-0774 for detailed guidance.

Mayor Ryu Kyung-gi of Jungnang-gu said, “I hope the Food Promotion Fund will provide practical help to food hygiene business owners struggling due to the economic difficulties.”

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