Dongjak-gu, Grace Period for Repayment of Small Business Development Fund Loans

Extension of payment deadline for regular repayments within 6 months from the application date until December... Support project for self-employed survival funds to revitalize the local economy affected by COVID-19

[Asia Economy Reporter Park Jong-il] Dongjak-gu (Mayor Lee Chang-woo) has decided to grant a 'deferral of repayment for Small and Medium Enterprise Development Fund loans' to small and medium-sized enterprises (SMEs) and small business owners struggling with management difficulties due to the prolonged COVID-19 pandemic and economic downturn.

Since establishing the Dongjak-gu Small and Medium Enterprise Development Fund Ordinance in 1996, the district has provided loan support through the Development Fund, lending a total of approximately 12.8 billion KRW as of the end of May, with about 2.8 billion KRW due for repayment this year.

This program was created to temporarily defer the principal repayment period of loans to help stabilize the management of SMEs within the region.

The support targets SMEs currently receiving loans from the Development Fund that are experiencing management difficulties due to COVID-19. However, if one individual operates multiple businesses, deferral applications are only possible for the business funds of the business that applied for the Development Fund loan.

Deferral of payment deadlines is possible for regular repayments within six months from the application date, but monthly interest on the loan must be paid during the deferral period.

Businesses wishing to apply should bring necessary documents such as their business registration certificate and tax payment completion certificate to either Woori Bank (Dongjak-gu Office branch) or Industrial Bank of Korea (Noryangjin branch), where they initially applied for the loan, by December.

For detailed inquiries, contact the Economic Promotion Division.

Additionally, until the 30th of this month, applications are being accepted for the 'Self-Employed Survival Fund Support Project' targeting small business owners with annual sales under 200 million KRW in the region.

Eligible recipients will receive a total of 1.4 million KRW in cash, paid as 700,000 KRW per month for two months. However, entertainment bars, financial businesses, and tobacco wholesale businesses are excluded from support.

For smooth application processing, online applications can be made on a five-day rotation basis via the Seoul Self-Employed Survival Fund website, and in-person applications operate on a ten-day rotation basis at nine Woori Bank branches in the region and the Sadang 1-dong and 2-dong community centers.

Kim Jung-won, head of the Economic Promotion Division, said, “Through this project, we expect to stabilize the management of SMEs and small business owners facing economic difficulties due to the prolonged COVID-19 pandemic. We will continue to do our best to promote the virtuous consumption movement so that the local economy can coexist and develop.”

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