Geumcheon-gu, 60 Billion Won Unsecured Special Loans for Small Business Owners and One Year Interest Support

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[Asia Economy Reporter Park Jong-il] Geumcheon-gu (Mayor Yu Seong-hoon) is launching a small loan project worth 60 billion KRW to alleviate the financial difficulties of small business owners and self-employed individuals struggling due to the prolonged COVID-19 pandemic.

On June 22 and 26, the district signed business agreements with the Seoul Credit Guarantee Foundation and Woori Bank respectively, and from July 1, it will support the "Geumcheon-type Special Credit Guarantee Loan for Small Business Owners" through the Geumcheon-gu Alley Economy Support Center.

The support targets small business owners located in Geumcheon-gu who have been operating for more than three months. Loans of 10 million to 30 million KRW per business will be provided under the conditions of a one-year grace period and four years of equal installment repayment.

Considering the economic situation of small business owners, the district will fully cover the interest for one year from the loan date, and thereafter, funds will be operated at a low interest rate of about 2% per annum.

Earlier, in April, the district established a comprehensive livelihood economy countermeasure in response to COVID-19, held meetings with small business owners in various sectors, and listened to the difficulties of merchants struggling with financial shortages due to difficulties in obtaining institutional loans.

Accordingly, in April, the district allocated 5 billion KRW in supplementary budget and, in cooperation with related economic institutions, prepared measures to provide interest-free (for one year), unsecured loans up to a total of 60 billion KRW to small business owners.

Small business owners wishing to apply for loan support can visit the 12th floor Alley Economy Support Center at Geumcheon-gu Office from July 1 to 24 to apply. From July 27 onwards, applications can be made at Woori Bank branches within the region until the 60 billion KRW fund is exhausted.

Yu Seong-hoon, Mayor of Geumcheon-gu, said, "After visiting alley sites over the past few months and listening to the difficulties of small business owners, the most common opinion was that it is difficult to get loans." He added, "Through this small business loan support, I hope the financial difficulties of small business owners will be resolved and the alley economy will open up."

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