Seoul City Offers Up to 5 Million Won Low-Interest Loans to Workers in Unstable Employment

[Asia Economy Reporter Jo In-kyung] On the 11th, the Seoul Metropolitan Government announced that it will provide low-interest loans of up to 5 million KRW per person to non-wage workers, also known as 'unstable employment workers,' who are struggling to make a living due to the COVID-19 pandemic. These workers have seen their incomes plummet due to COVID-19 but cannot receive unemployment benefits because they are not enrolled in employment insurance.

This support utilizes 3.6 billion KRW from the Seoul Social Investment Fund (3 billion KRW from city funds and 600 million KRW from private funds) to provide loans of up to 5 million KRW per individual worker for three years at an annual interest rate of 3%. The city explained that this is the first loan support program for special employment, freelancers, and platform workers among local governments.

The loan recipients are workers engaged in business activities within the Seoul area who have belonged to organizations with special employment, freelancers, or platform workers as members for more than three months. Additionally, implementing agencies can be selected through a public contest among worker organizations that operate loan or mutual aid projects. The selected organizations can receive loans up to 2 billion KRW from the implementing agency and must refinance their affiliated workers (individuals) with loans of up to 5 million KRW per person for three years at an annual interest rate of 3%.

The city is recruiting loan implementing agencies targeting social finance institutions and organizations until the 24th. The selected implementing agencies can apply for city loan funds up to five times the amount they have secured themselves and proceed with loans to special employment, freelancers, platform workers, etc., in accordance with the purpose of the Social Investment Fund. The selection of target companies and projects, as well as repayment management, will be determined by each implementing agency.

Seo Seong-man, Director of Labor and Livelihood Policy at Seoul City, said, "The purpose is to protect workers in blind spots by providing emergency funds as loans to special employment and freelance workers facing economic difficulties due to COVID-19." He added, "We will continue to actively support worker organizations in establishing mutual aid foundations and enabling stable livelihoods."

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