Songpa-gu Provides 12 Billion Won Loan Support for Small and Medium Enterprises

Providing 1.5% Low-Interest Loans for SMEs and Small Business Owners...Plan to Operate Year-Round for Rapid Funding Support

[Asia Economy Reporter Jong-il Park] Songpa-gu (Mayor Park Seong-su) is implementing a large-scale loan support program worth 12 billion KRW for small and medium-sized enterprises (SMEs) and small business owners in the area who have suffered economic damage due to the prolonged COVID-19 pandemic.

The support targets companies located in Songpa-gu, excluding those in industries not eligible for loan support or companies with tax delinquencies.

The support scale utilizes 12 billion KRW, offering loans up to 200 million KRW per company at a fixed annual interest rate of 1.5%.

The loan period is 5 years, with a 2-year grace period followed by 3 years of equal installment repayments.

This loan support program operates year-round without a separate application period. The district plans to provide funds promptly through weekly support reviews.

To apply for funds, applicants must prepare the required documents and visit or mail them to the Job Policy Division of Songpa-gu Office. Detailed information can be found in the Notices and Announcements section on the Songpa-gu Office website.

Additionally, for SMEs and small business owners lacking collateral, a credit guarantee recommendation system worth 5 billion KRW will be simultaneously implemented in cooperation with the Credit Guarantee Foundation, issuing guarantees up to 100 million KRW per company.

Meanwhile, last year, the district supported large-scale unsecured loans worth 6 billion KRW through an agreement between the district office, the Credit Guarantee Foundation, and Hana Bank?the first of its kind among autonomous districts?extending the principal repayment period of loans by one year for companies struggling due to COVID-19.

As a result, 62 companies in the area benefited from 1.78 billion KRW. Beneficiary companies expressed their gratitude, stating that the extension of the repayment deadline greatly helped alleviate their financial difficulties.

Park Seong-su, Mayor of Songpa-gu, said, “I hope this large-scale loan support will provide practical help to companies facing management difficulties due to COVID-19. We will secure additional funds once the current funds are exhausted and continue to provide generous support.”

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