Mapo-gu Significantly Expands Loan Fund (24.5 Billion KRW) to Stabilize Small and Medium Enterprises' Management

<기사>40 Billion KRW Small Business Development Fund at 1% Interest, Up to 2 Billion KRW per Company... 20.5 Billion KRW Special Credit Guarantee at Around 2% Variable Interest, Up to 50 Million KRW per Company Support

[Asia Economy Reporter Park Jong-il] Mapo-gu (Mayor Yoo Dong-gyun) is launching a loan support program worth 24.5 billion KRW to assist small and medium-sized enterprises (SMEs) and small business owners in the area who are facing economic difficulties due to the prolonged COVID-19 pandemic.

This year, the district has prepared a total of 24.5 billion KRW, including 4 billion KRW from the SME Development Fund and 20.5 billion KRW for special credit guarantees, significantly expanding the scale of policy funds provided to local businesses compared to last year.

In particular, the district will make a special contribution of 700 million KRW to the Seoul Credit Guarantee Foundation, which will support credit guarantees worth 10.5 billion KRW?15 times the contribution amount?for small enterprises and small business owners in the area.

This amount is more than three times larger than the previous year’s, and the 700 million KRW budget was allocated in cooperation with the Mapo-gu Council to help small business owners severely affected by COVID-19.

Additionally, through a business agreement with Woori Bank, a special credit guarantee program worth 10 billion KRW will also be supported.

First, for the ‘SME Development Fund,’ companies engaged in manufacturing or manufacturing-related knowledge service industries with collateral capability (real estate or credit guarantee certificates) can receive loans up to 200 million KRW at a fixed interest rate of 1.0%, with a 2-year grace period and 3-year equal installment repayment, continuing from last year.

For small enterprises, small business owners, or companies without collateral capability, loans up to 50 million KRW can be provided under the ‘Special Credit Guarantee’ system, recommended by the district mayor and guaranteed by the Seoul Credit Guarantee Foundation, with a variable interest rate around 2%, a 1-year grace period, and 4-year equal installment repayment.

Companies wishing to receive support from the SME Development Fund can consult in advance at Woori Bank Mapo-gu Office Branch (324-2274, extension 311) and then inquire at the Mapo-gu Office Regional Economy Division. Those seeking special credit guarantees can consult at the Seoul Credit Guarantee Foundation Mapo Branch.

Mayor Yoo Dong-gyun of Mapo-gu said, “We aim to alleviate the financial difficulties of SMEs and small business owners struggling due to the prolonged COVID-19 situation by joining forces with the Credit Guarantee Foundation. Since these are challenging times for everyone, we will make greater efforts to support the recovery and assistance plans for small business owners in the region.”

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