Jungnang-gu to Support SMEs and Small Business Owners with 4 Billion Won This Year

Loan Applications Open from February 8 to 26 for Local SMEs and Small Business Owners... Interest Rates Temporarily Reduced from 1.5% to 0.8% Until Year-End

[Asia Economy Reporter Jongil Park] Jungnang-gu (District Mayor Ryu Kyung-gi) has rolled up its sleeves to support small and medium-sized enterprises (SMEs) and small business owners in the area who are experiencing financial difficulties due to the prolonged COVID-19 pandemic.

The district will provide loans totaling 4 billion KRW this year, with 2 billion KRW each in the first and second halves, using the SME Development Fund.

The loan interest rate will be significantly reduced from the existing 1.5% to between 0.8% until the end of this year (including the remaining loan amounts of existing borrowers), and the repayment terms are a 2-year grace period followed by 3 years of equal installment repayments.

The loan limit is up to 100 million KRW per company, and the loan amount will be determined based on collateral capacity according to bank credit regulations (real estate or credit guarantee certificates). The loan funds can only be used for working capital purposes.

Eligible applicants are SMEs and small business owners with business locations in Jungnang-gu who have been operating for more than 3 months after business registration. Companies currently receiving SME Development Fund support and repaying loans, as well as certain restricted industries such as finance, real estate, and luxury or entertainment businesses, are excluded.

Applications are accepted from the 8th to the 26th. Applicants can download the loan application form from the Jungnang-gu Office website (Jungnang Introduction → Jungnang News → Announcements/Notices), prepare required documents such as a business plan, a copy of the business registration certificate, and value-added tax standard certificates for the past 3 years, and submit them in person to the Corporate Support Division of Jungnang-gu Office.

Final selection will be made through deliberation by the SME Development Fund Operation Review Committee, and loans can be executed starting in April through the Woori Bank Jungnang-gu Office branch.

Additionally, for companies with principal repayments due this year, loan principal repayment can be deferred for up to 6 months upon application, and the maturity will be automatically extended.

For more details regarding SME and small business loan applications, please refer to the Jungnang-gu Office website or contact the Corporate Support Division of Jungnang-gu Office for guidance.

Ryu Kyung-gi, Mayor of Jungnang-gu, said, “We support the SMEs and small business owners who are quietly working hard under difficult conditions such as COVID-19. This loan support project will be a good opportunity to help stabilize business management.”

As of 2018, among the total 28,024 businesses in the area, 23,815 have fewer than 5 employees, accounting for about 85% of all businesses, which are small-scale business owners.

Last year, the district supported a total of 5.1 billion KRW in SME Development Fund loans and provided 3.1 billion KRW in emergency credit guarantees for companies affected by COVID-19, making efforts to revitalize local small business owners and SMEs.

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