Seongdong-gu Supports Low-Interest Loans for Social Enterprises

District expands social enterprise loan support to 600 million KRW amid prolonged COVID-19... Increases low-interest loans through fund expansion, also provides business consulting

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Won-oh) is expanding the scale of the ‘Social Economy Revitalization Fund’ to provide low-interest loans to social economy enterprises struggling due to the prolonged COVID-19 pandemic.

The ‘Social Economy Revitalization Fund’ is a fund established to support capable social enterprises by providing loans to foster and promote qualitative growth of social economy enterprises.

The district first contributed a budget of 300 million KRW and simultaneously secured 300 million KRW in private capital, expanding the loan fund size from 270 million KRW last year to 600 million KRW.

This is to flexibly respond to the increasing demand for loans caused by COVID-19.

The district selected the ‘Together Foundation’ as the private implementing agency to operate the fund this year. The implementing agency will receive 300 million KRW from the district and add 300 million KRW of its own investment capital to provide refinancing to social economy organizations at a low interest rate of 2% for up to five years.

Additionally, corporate consulting for fostering social enterprises will be supported.

The total loan amount of 300 million KRW will be provided to social economy organizations such as social enterprises, village enterprises, and cooperatives that create significant social value and have business execution capabilities but face difficulties accessing financial institutions.

A district official stated, “Recently, young innovative entrepreneurs pursuing various social values to solve social problems and realize public value are gathering mainly in Seongsu-dong,” adding, “Since 2017, we have been creating and operating this fund in cooperation with financial investment institutions to help such enterprises so that the social economy can firmly take root in the region.”

Applications for loan support will begin on June 15. For more details, please contact the Job Policy Division of Seongdong-gu Office.

Jeong Won-oh, Mayor of Seongdong-gu, said, “We hope that the expanded support of the Social Economy Revitalization Fund will provide practical help to social economy organizations facing difficulties,” and added, “We will continue to work together with the public and private sectors to spread a community culture that solves local social problems together.”

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