Seocho-gu Provides 4 Billion KRW Loan Support for SME Development Funds at 1.5% Annual Interest Rate

Up to 200 Million KRW Support per Company... Applications Accepted Until February 3

[Asia Economy Reporter Park Jong-il] Seocho-gu is providing a loan support of 4 billion KRW to alleviate the financial difficulties of local small and medium-sized enterprises (SMEs) struggling with management due to the resurgence of COVID-19.

The 2021 SME Development Fund has lowered the interest burden on SMEs by reflecting market interest rate trends.

The loan conditions allow applications of up to 200 million KRW per company for facility funds, working capital, and technology development funds, with an annual interest rate of 1.5%, a one-year grace period, and equal installment repayments over three years.

The support targets are SMEs with factories registered in Seocho-gu or whose main office (headquarters) is located in Seocho-gu as of the application date. Companies currently repaying or whose repayment period has not expired from previous Seocho-gu SME Development Fund loans are excluded.

Companies wishing to apply for the loan must undergo prior review with banks and credit guarantee institutions to assess financial status and creditworthiness before applying.

Applicants can download the loan application form and business plan posted on the Seocho-gu Office website, complete them, and submit the application and related documents to the Job and Economy Division of the district office by February 3.

Submitted loan applications will be reviewed by the SME Development Fund Operation Deliberation Committee to decide on support eligibility.

Meanwhile, the district has actively promoted financial support through ultra-fast loans in the first and second rounds this year to support self-employed individuals, including interest subsidy support in cooperation with commercial banks.

Additionally, efforts and support have been made for self-employed individuals struggling due to COVID-19, such as support for new self-employed, support for small business owners in blind spots, and support for businesses affected by visits from confirmed cases.

Jo Byung-geon, head of the Job and Economy Division, said, “We expect that stabilizing the management of local SMEs struggling due to the economic downturn will also have a job creation effect. We will continue to implement various policies to stabilize corporate management.”

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