Gangnam-gu Executes 20 Billion KRW for SME Development Fund... Largest Scale Among Seoul Autonomous Districts

Annual 0.8% Loan Applications Accepted Until February 19... Sequential Payments Until April for Small and Medium Enterprises and Small Business Owners Facing Difficulties

[Asia Economy Reporter Park Jong-il] Gangnam-gu (District Mayor Jung Soon-gyun) plans to provide a first-round loan support of 10 billion KRW at a fixed annual interest rate of 0.8%, utilizing the 20 billion KRW Small and Medium Enterprise Development Fund, the largest among Seoul’s 25 autonomous districts, and is accepting applications until February 19.

The district has decided to expedite disbursement to support small and medium enterprises and small business owners struggling due to COVID-19, with plans to make payments sequentially until April.

The loan limit is up to 300 million KRW per company, with a one-year grace period followed by four years of equal installment repayments. The repayment period has been extended by one year compared to last year, and the loan interest rate has been reduced by 0.4 percentage points from last year’s 1.2% per annum to lessen the burden on companies.

The loan screening results will be notified collectively on February 26.

Eligible applicants are individuals and corporations located in Gangnam-gu with more than one year since business registration, who have collateral capabilities such as real estate or credit guarantees according to bank credit regulations.

Interested companies can submit the loan application form and business plan documents to the Regional Economy Division of the district office. Detailed information can be found on the Gangnam-gu Office website.

Meanwhile, last year, the district provided interest-free loans totaling 45.439 billion KRW to 354 companies using the Small and Medium Enterprise Development Fund.

Additionally, from the end of last year, public utility fees of 500,000 KRW per company are being supported for self-employed individuals with annual sales under 200 million KRW, with applications accepted until the 20th.

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