Gwanak-gu Provides Additional 3 Billion KRW Loan for Small and Medium Enterprise Development Fund

Securing a 3 Billion Won Supplementary Budget... Temporary 0% Interest Loan (0.8%)

[Asia Economy Reporter Park Jong-il] Gwanak-gu (Mayor Park Jun-hee) is providing additional loan support from the Small and Medium Business Development Fund to stabilize the management of small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties due to the impact of COVID-19.

The district announced that it initially planned to provide loans worth 3 billion KRW this year, but due to prolonged financial difficulties caused by COVID-19, it increased the budget by an additional 3 billion KRW through a supplementary budget, making a total of 6 billion KRW available for loan support.

Following loan support of 2.762 billion KRW to 26 local companies by April, the district plans to promptly provide additional loan funds to help small business owners manage their finances and stabilize their operations.

The loan limit is up to 100 million KRW for SMEs and up to 50 million KRW for small business owners, with an ultra-low interest rate of 0.8% applied until December this year. The repayment period is a 2-year grace period followed by 3 years of equal installment repayments.

Eligible applicants are SMEs and small business owners who have a business location in Gwanak-gu, have registered their business for more than 6 months, and possess collateral capability according to bank credit regulations such as real estate. Industries such as finance, real estate, lodging, bars, tobacco, alcohol, and other luxury, entertainment, or gambling-related sectors are excluded.

The application period is from the announcement date until funds are exhausted, and the district plans to increase the frequency of the Small and Medium Business Development Fund Operation Committee meetings to provide prompt support.

Applications can be submitted by visiting the Gwanak-gu Office Regional Commercial Revitalization Division after prior consultation on collateral scope at Woori Bank Gwanak-gu Branch and Seoul Credit Guarantee Foundation Gwanak Branch, preparing the application form, business plan, business registration certificate, and financial statements for the past 3 years.

Mayor Park Jun-hee said, “We hope that the expansion of this Small and Medium Business Development Fund loan support will greatly help SMEs and small business owners recover their management from difficulties caused by COVID-19,” adding, “We will focus on the economy like quarantine efforts and do our utmost to revive the local economy devastated by COVID-19.”

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