Jongno-gu Provides Loan Support to Small and Medium Businesses Facing Financial Difficulties Due to COVID-19

Support Scale of 2.1 Billion KRW... Up to 50 Million KRW per Company, Support Within 30% of Previous Year's Sales

Jongno-gu is regularly disinfecting traditional markets in the area to help merchants and prevent the spread of COVID-19 infections.

[Asia Economy Reporter Jongil Park] Jongno-gu is providing loan support from the Small and Medium Enterprise Development Fund to COVID-19-affected companies in order to help alleviate financial difficulties and stabilize management for small and medium-sized merchants in the area.

The support scale is 2.1 billion KRW, with up to 50 million KRW per company, within 30% of the previous year's sales. The loan interest rate is 1.5%, with a 1-year grace period and 4 years of equal installment repayment.

Applications are only accepted for purposes such as facility and operating funds, and technology development funds. Service industries such as pubs, restaurants, real estate, and luxury entertainment businesses are excluded. Loans are available only to companies with collateral capacity (real estate or credit guarantee) according to bank credit regulations.

The eligible applicants are ▲small and medium enterprises with factories located and registered within the district’s jurisdiction ▲tenants of the startup incubation center operated by the district ▲small enterprises and small merchants as defined in Article 2 of the “Act on the Protection and Support of Small Businesses” ▲small enterprises and small merchants with their main office in Jongno-gu but registered factories in other regions, operating businesses recognized by the district mayor as promising and suitable for local characteristics.

Those wishing to apply should submit the loan application form, a copy of the business registration certificate, corporate registration certificate, and proof of business location to the district office’s Job and Economy Division by May 15.

Depending on the review results of the operation review committee, loan amounts may be adjusted or applicants excluded. If it is recognized that the fund is used contrary to the submitted business plan and purpose, the loan will be recalled.

Also, since the use of loan funds will be verified after the loan, applicants must clearly prepare a fund usage plan when applying.

For more details, refer to the announcement on the district office website or contact the Job and Economy Division.

District Mayor Kim Young-jong stated, “We have decided to provide additional loans from the Small and Medium Enterprise Development Fund to help stabilize the management of small and medium merchants struggling due to COVID-19,” adding, “We will revitalize the local economy and implement policies that carefully address the difficulties of merchants in the district to make Jongno a good place to do business.”

Meanwhile, Jongno-gu has continuously issued Jongno Love Gift Certificates to help increase sales and carried out the Good Rent Movement to support merchants amid the prolonged COVID-19 economic downturn.

Additionally, the district regularly disinfects traditional markets and distributes related supplies such as masks, hand sanitizers, and prevention guideline posters, and has held sales promotion events and social markets to support social economy sales channels for business recovery.

Furthermore, the district is promoting the “Seoul-type Good Landlord Support Project,” which supports private landlords who voluntarily reduce rents for self-employed and small merchants, encouraging coexistence between landlords and tenants. Selected landlords receive subsidies for “building repair costs” related to durability improvements such as waterproofing, insulation, windows, and restroom improvements, or services like “electrical safety inspections.”

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