Seongdong-gu Provides 6.5 Billion KRW Loan Support for SMEs to Combat Coronavirus

District Provides 6.5 Billion KRW Loan Support to SMEs to Minimize COVID-19 Spread Damage...District Funds at 2% Interest, Bank Cooperation Funds Cover 1% Interest for Low-Interest Loans

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Wono) will provide early support of 6.5 billion KRW in the "First Half Small and Medium Enterprise Development Fund Loans" to minimize the damage to small and medium-sized enterprises (SMEs) and small business owners caused by the spread of the novel coronavirus.

Applications will be accepted from the 10th to the 21st. The interest rate is 2.0%, and the loan period is 4 years (1 year grace period, 3 years equal repayment). SMEs and small business owners with their main office or factory located in Seongdong-gu are eligible to apply. Businesses that are temporarily closed, permanently closed, unable to obtain loans from financial institutions, or engaged in luxury or consumption-oriented industries are excluded.

The loan amount limit is up to 200 million KRW within one-quarter of the annual sales for companies with collateral capability such as real estate or credit guarantees.

The district funds provide loans at an ultra-low interest rate of 2%, and the bank cooperation funds support 1.0% of the bank loan interest rate.

In particular, if using Shinhan Bank Seongdong-gu Office branch, loans are available at a low interest rate of 1.8% to 2.5%. For startups and new companies without sales, applications can be made for up to 30 million KRW.

Companies wishing to apply should refer to the Seongdong-gu Office website, bring the required documents, and visit Shinhan, Woori, or Industrial Bank of Korea to receive a preliminary collateral evaluation.

After evaluation, applications can be submitted in person to the Regional Economy Division on the 13th floor of Seongdong-gu Office (☎2286-5454) within the application period. After the application deadline, the operating committee will review and select the supported companies. Loan execution and fund receipt will be possible by the end of March.

Jeong Wono, Mayor of Seongdong-gu, said, "To minimize the damage to small business owners and SMEs who are struggling due to the sudden spread of the novel coronavirus, we have quickly sought support measures, and we hope that early loan support will help stabilize management and fund operation."

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