Dongdaemun-gu, Emergency Loan Support for Small Business Owners Affected by COVID-19

Loan up to 10 million KRW per business, interest and credit guarantee fees supported for 1 year... Applications open from the 13th

[Asia Economy Reporter Jong-il Park] Dongdaemun-gu (Mayor Yoo Deok-yeol) is providing small interest-free loans to local small business owners who are struggling due to the damage caused by COVID-19.

Loans for business stabilization funds (rent and labor costs) will be provided interest-free for one year, up to 10 million KRW per business (1.5% interest after one year). The credit guarantee fee (3.5%) incurred when executing loans secured by credit guarantees will also be supported.

To this end, the district will invest 4.3 billion KRW (4.2 billion KRW for loans, 100 million KRW for interest and guarantee fee support).

The support targets are small business owners with business addresses in Dongdaemun-gu (fewer than 5 regular employees, fewer than 10 employees in mining, manufacturing, construction, and transportation industries). However, businesses operating for more than one year must have sales under 200 million KRW, and those operating between 6 months and less than one year must have sales under 100 million KRW.

Financial and insurance industries, real estate businesses (excluding brokerage), lodging and bars, restaurants with exclusive areas over 330㎡, dance halls, golf practice ranges, precious metals and game centers, luxury, entertainment, and gambling industries are excluded from support.

The application period for the first round is from May 13 to May 31. If the number of applicants is low during the first application period, applications will be accepted regardless of business sales from June 1 until funds are exhausted.

Small business owners wishing to apply for loans should prepare △loan application form △copy of business registration certificate △copy of business lease contract △small business confirmation certificate △value-added tax standard certificate, national and local tax payment certificates, and income amount certificates, and visit the 6th floor Economic Promotion Division of Dongdaemun-gu Office to submit them. Related forms can be downloaded from the Dongdaemun-gu Office website (www.ddm.go.kr) under ‘Life Information > COVID-19 > Emergency Support Projects’ bulletin board.

Yoo Deok-yeol, Mayor of Dongdaemun-gu, stated, “We plan to prioritize loans and interest support mainly for small self-employed business owners who have suffered the most economic damage from COVID-19 but find it difficult to obtain loans due to lack of collateral. We will continue to provide various supports to revitalize the local economy.”

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