Dongdaemun-gu Provides Emergency Low-Interest Loans to SMEs and Others

Injection of 3.5 Billion KRW from SME Development Fund and 2.5 Billion KRW Cooperation Fund from Woori Bank... Up to 200 Million KRW Loan per Company

[Asia Economy Reporter Jongil Park] Dongdaemun-gu (Mayor Yu Deok-yeol) will provide emergency financial support starting from the 10th to local small and medium-sized enterprises (SMEs) and small business owners who are struggling due to the spread of the novel coronavirus infection.

The district will invest a total of 6 billion KRW, including 3.5 billion KRW from the SME Development Fund and 2.5 billion KRW from Woori Bank cooperation funds, offering loans at a low interest rate of 2%.

The maximum loan amount per company is up to 200 million KRW.

Repayment conditions include equal installments over 5 years, or a 1-year grace period followed by 4 years of equal installments, or a 2-year grace period followed by 3 years of equal installments. This extends the existing 4-year equal installment or 1-year grace plus 3-year equal installment terms by one year, reducing the repayment burden on SMEs and small business owners.

The support targets are SMEs and small business owners with business addresses in Dongdaemun-gu. However, financial and insurance industries, real estate, lodging, pubs, restaurants with exclusive areas over 330㎡, dance halls, golf practice ranges, precious metals and game rooms, and luxury, entertainment, and gambling industries are excluded.

SMEs and small business owners wishing to apply for loans must prepare △ loan application form △ copy of business lease contract △ financial statements for the past 3 years or VAT taxable standard certificate △ business registration certificate and other supporting documents, and visit the 6th floor Economic Promotion Division of Dongdaemun-gu Office to submit them.

Related forms can be downloaded from the Dongdaemun-gu Office website (www.ddm.go.kr) under ‘Life Information → Local Economy → SME Support Application’.

The district plans to simplify the fund loan review process in writing, significantly reducing the period from about 50 days for application, review, and support to around 2 weeks, enabling faster assistance.

Yu Deok-yeol, Mayor of Dongdaemun-gu, stated, “We will resolve the difficulties of local SMEs and small business owners through prompt emergency financial support,” and added, “We will continue to do our best to minimize the damage to residents caused by the novel coronavirus infection.”

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