Seocho-gu Prepares Various Support Measures for Small Business Owners Affected by COVID-19

<기사> SME Development Fund Loan Interest Rate Reduced from 1.8% to 1.5%, Loan Review Period Significantly Shortened (Quarterly to On-Demand), Up to 200 Million KRW Support... Financial Support for Food Sanitation Businesses, Low Interest Rates of 1-2% Annually, Up to 100 Million KRW Support

[Asia Economy Reporter Jong-il Park] Seocho-gu (Mayor Jo Eun-hee) is attracting attention by implementing various support measures for small business owners to overcome the prolonged coronavirus pandemic.

According to a recent survey, many self-employed respondents indicated that the most necessary support measure for damages caused by the novel coronavirus was a "reduction in loan interest rates."

In response, the district lowered the interest rate on the Small and Medium Enterprise Development Fund from the existing 1.8% to 1.5%, and changed the loan review process from quarterly to on-demand, enabling small business owners and SMEs to receive loans within 1 to 2 weeks.

For small-scale self-employed and small business owners lacking collateral capability, the district, together with the Seoul Credit Guarantee Foundation, provides guarantees up to 200 million KRW.

The interest and guarantee rates have also been reduced from the previous 3.8% to a maximum of 2%. To ensure prompt and efficient guarantee support, the Seoul Credit Guarantee Foundation conducts a one-stop process from preliminary consultation to review and loan issuance. For detailed inquiries, contact the Seoul Credit Guarantee Foundation Lee Su Branch at (2174-4424~9).

The district also supports facility improvements for food hygiene businesses struggling due to the coronavirus by offering low-interest loans of 1-2% annually, up to 100 million KRW per business, through the Food Promotion Fund.

The eligible businesses include general, rest, and bakery food service establishments that have completed business registration within the district. Business owners can obtain loans at rates lower than market interest for necessary facilities, restroom improvements, or operating model restaurants.

Loan applicants must have collateral capability according to bank credit regulations set by the collateral bank. For more information, contact the Seocho-gu Public Health Center Hygiene Division at (2155-8023).

Additionally, the district provides local tax support for businesses directly or indirectly affected by closures due to the novel coronavirus.

▲ Extensions of deadlines for acquisition tax, local income tax reporting and payment ▲ Postponement of notices, installment billing, collection deferral, and collection deferral for arrears ▲ Extension of seizure and sale measures for arrears within a range of 6 months to a maximum of 1 year ▲ Postponement of tax audits within a 6-month range.

Furthermore, the district is simultaneously conducting activities to create neighborhood commercial districts where customers can visit with confidence.

▲ Regular disinfection campaigns in major commercial areas in cooperation with merchants' associations ▲ Promotion of "flower life" across all departments to support flower farms and flower shops that have experienced a sharp decline in sales due to recent cancellations of graduation and entrance ceremonies.

On February 14, Valentine's Day, an event will be held where all employees purchase one flower instead of chocolates, and departments will also purchase flowers and potted plants.

Seocho-gu Mayor Jo Eun-hee stated, "In this national disaster situation caused by the spread of the novel coronavirus, we will do our best to support small business owners so that the local economy does not shrink and cause further damage."

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