Seoul Gangseo-gu, Grace Period for Principal Repayment of Small Business Development Fund in First Half of Year

Applications Accepted Until February 5 for 163 Companies Currently Repaying Loans

[Asia Economy Reporter Jong-il Park] Gangseo-gu, Seoul (District Mayor Noh Hyun-song) has stepped up to help small and medium-sized enterprises (SMEs) and small business owners struggling due to the COVID-19 crisis.

The district has decided to defer the principal repayment period for the first half of 2021 installment repayments on the SME development fund loans until the principal maturity date.

Once the deferral is approved after application, the installment principal due in February can be paid in a lump sum on the maturity date.

By temporarily deferring the installment principal repayment schedule, the aim is to reduce the debt burden on local SMEs and small business owners facing difficulties due to the prolonged COVID-19 situation, and to support business stability and rapid recovery.

The support targets 163 companies currently repaying loans from the district’s SME development fund, with a total scale of about 1.3 billion KRW if all eligible companies apply.

SMEs and small business owners who have suffered direct or indirect damage from COVID-19 can apply for deferral if they have no defaults such as principal and interest arrears, capital erosion, or business closure.

Even if arrears occurred between January and December last year, those who have cleared all arrears with financial institutions as of the application date, or those temporarily closed since January last year, are also eligible for support.

Companies wishing to apply for deferral should visit the Woori Bank Gangseo-gu Office branch by February 5 and submit documents such as the repayment deferral application and a certificate confirming business difficulties.

Detailed information can be found on the ‘Gangseo-gu Office website - News Plaza - Legislation/Notices/Announcements,’ where necessary application forms can also be downloaded.

District Mayor Noh Hyun-song said, “I hope this loan repayment deferral decision will provide some help to SMEs and small business owners struggling due to the prolonged COVID-19 crisis,” and added, “We will continue to 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.