Seoul Gangseo-gu Lowers Interest Rate on Small Business Development Fund Loans (1.5%)

Both New and Existing Loan Companies Receive Benefits

[Asia Economy Reporter Jong-il Park] Gangseo-gu, Seoul (Mayor Noh Hyun-song) is significantly lowering the interest rates on the Small and Medium Enterprise Development Fund loans to revive the local economy, which has been depressed due to COVID-19.

The district decided to reduce the interest rate on the Small and Medium Enterprise Development Fund loans from the existing 2% to 1.5% to ease the interest burden on small and medium-sized enterprises and small business owners struggling with management difficulties caused by the COVID-19 crisis.

This interest rate reduction measure will be implemented starting this month and will apply not only to companies receiving new loans but also to those currently holding loans.

The Small and Medium Enterprise Development Fund, organized with a total scale of 6 billion KRW this year, supports up to 300 million KRW per company (50 million KRW for small business owners).

The support targets are small and medium enterprises registered as factories within the district, venture companies and Inno-Biz headquartered in Gangseo-gu, and small business owners with business registration in the district. Applicants must have been registered for at least one year as of the application date and must have sales performance and collateral capability.

The support conditions are based on the use of funds for facility funds, working capital, and technology development funds, with a repayment plan of 1-year grace period followed by 4 years of equal installments.

Applications are accepted until funds are exhausted, and interested companies and small business owners can visit the Gangseo-gu Office Regional Economy Division to submit the application form along with a business plan, a copy of the business registration certificate, and other related documents.

Supported companies will be selected based on the credit collateral capacity inquiry results from financial institutions, and if selected, they can receive loan support immediately.

Currently, 199 companies have received a total of 9.3 billion KRW in loans, and with this measure, these companies are expected to reduce their interest burden by a total of 46.5 million KRW this year.

A district official said, “We hope this loan interest rate reduction measure will help alleviate the financial difficulties of small and medium enterprises struggling due to the COVID-19 crisis,” and added, “We will continue to do our best to ensure the depressed local economy recovers as soon as possible.”

For inquiries, contact the Gangseo-gu Office Regional Economy Division.

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