‘Yeongdeungpo-gu Small and Medium Business Development Fund’ Principal Repayment Deferred Up to 1 Year

Legal Foundation Established for Repayment Deferral with Enactment of SME Promotion Fund Enforcement Rules in September... Repayment Within Desired Period of Minimum 3 Months to Maximum 1 Year... Visit District Office by November 11 for Application

[Asia Economy Reporter Park Jong-il] Yeongdeungpo-gu (Mayor Chae Hyun-il) will defer the principal repayment period of the Yeongdeungpo-gu Small and Medium Enterprise Development Fund for up to one year to reduce the principal repayment burden on local small business owners and SMEs struggling with management due to the prolonged COVID-19 pandemic.

The purpose is to temporarily defer the principal repayment timing of loans for SMEs and small business owners facing delinquency risks due to the spread of COVID-19, thereby alleviating excessive debt burdens and helping stabilize management and prompt recovery of SMEs.

In September, the district revised the “Yeongdeungpo-gu Small and Medium Enterprise Development Fund Establishment and Operation Ordinance Enforcement Rules” to establish a legal basis for deferring the principal repayment period of the SME Development Fund within a one-year range.

Accordingly, 52 companies currently repaying the principal after borrowing from the Yeongdeungpo-gu SME Development Fund can defer principal repayment for a period ranging from a minimum of 3 months to a maximum of 1 year as of the end of December 2020.

Additionally, the extension of the loan maturity period due to the principal repayment deferral can be chosen according to the company’s preference.

Companies wishing to apply should visit the Yeongdeungpo-gu Office Job and Economy Division by November 11 and submit the repayment deferral application form, business registration certificate, and other required documents.

For more details, inquiries can be made through the Yeongdeungpo-gu website or the Job and Economy Division.

Meanwhile, in April, the district urgently allocated 3 billion KRW in support funds for local small business owners economically affected by the spread of COVID-19 through a supplementary budget, focusing on revitalizing the local economy.

Following loan support of 3.76 billion KRW in the first half of this year, an additional 4.2 billion KRW was provided in the second half, expanding the total SME Development Fund support to 8 billion KRW for the year.

In particular, for the “COVID-19 Emergency Fund” of 3 billion KRW, support of up to 30 million KRW per company is provided with a temporary zero-interest condition for two years. For the interest portion (1.8%) during the two years, up to 1.08 million KRW is paid back in four installments as interest cashback, and thereafter, an interest rate of 1.8% applies during the repayment period.

In the first half of this year, the district supported 12 companies with 1.5 billion KRW from the Development Fund and 79 companies with 2.3 billion KRW from the COVID-19 Emergency Fund.

Also, as of October 16, applications for the second half support project totaled approximately 5.2 billion KRW from 48 companies, and after review, 4.2 billion KRW will be supported.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “We have decided to extend the repayment deferral to support small business owners and SMEs suffering from management deterioration due to the prolonged COVID-19 pandemic,” adding, “We will do our best to prepare proactive responses and support measures to revitalize the local economy.”

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