Seoul Gangseo-gu Further Lowers Interest Rates on Small Business Development Fund Loans

[Asia Economy Reporter Jongil Park] Gangseo-gu, Seoul (District Mayor Noh Hyun-song) will further reduce the interest rates on loans from the Small and Medium Enterprise Development Fund to revive the local economy, which has been depressed due to the spread of the novel coronavirus infection (COVID-19).

Last April, to ease the interest burden on small and medium enterprises and small business owners struggling with management difficulties caused by the COVID-19 crisis, the loan interest rate from the Small and Medium Enterprise Development Fund was lowered from the existing 2% to 1.5%.

The district will join the government's low-interest rate policy and significantly reduce the loan interest rate to 0.8% for all small business owners facing difficulties.

In addition, the Small and Medium Enterprise Development Fund, which was budgeted at a total of 6 billion KRW this year, will be expanded to 8 billion KRW, supporting up to 300 million KRW per company (50 million KRW for small business owners).

This interest rate reduction measure will be implemented temporarily until the end of this year and will apply not only to companies receiving new loans but also to those currently holding loans.

The support targets are small and medium enterprises registered with factories in the region, venture companies and Inno-Biz headquartered in Gangseo-gu, and small business owners with business registration in the region. Applicants must have been registered for more than one year as of the application date and must have sales performance and collateral capability. However, companies currently repaying loans or those in restricted industries such as real estate and other luxury and entertainment businesses are not eligible to apply.

The support conditions are based on the use of facility funds, working capital, and technology development funds, with a one-year grace period followed by four years of equal installment repayments.

Interested companies and small business owners can visit the Gangseo-gu Office Regional Economy Division and submit the application form along with related documents such as a business plan and a copy of the business registration certificate.

Supported companies will be selected based on the credit collateral capacity inquiry results from financial institutions and can receive support immediately after selection.

District Mayor Noh Hyun-song said, “We hope this additional loan interest rate reduction measure will provide practical help to small business owners struggling due to the COVID-19 crisis,” and added, “We will continue to do our best to ensure that the depressed local economy recovers as soon as possible.”

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