Yongsan-gu Supports Youth Enterprises with 2 Billion KRW Loan at 0.8% Interest Rate

Interest Rate 0.8% for Former Job Fund, 1-Year Grace Period with 4-Year Equal Installment Repayment... Applications Accepted Year-Round Until 2 Billion Won Fund Depletion

[Asia Economy Reporter Jong-il Park] Yongsan-gu (Mayor Seongjanghyun) has launched a youth enterprise loan support program in 2021 using the district's job fund.

The loan scale is 2 billion KRW, with an interest rate of 0.8% per annum (temporarily reduced in 2021).

Under the condition of a 1-year grace period and 4 years of equal installment repayment, loans up to 100 million KRW (50 million KRW for small business owners) can be borrowed. The funds can be used for business stabilization funds, facility funds, rental deposit, etc.

The loan targets are youth aged 39 or younger who have been residing in Yongsan for more than one year as of the loan application date and are operating businesses within the district (small and medium enterprises and small business owners). Businesses such as general entertainment restaurants, dance entertainment restaurants, and other gambling facility management and operation businesses are excluded.

Those who wish to apply should visit the Shinhan Bank Yongsan-gu Office branch (one-stop window) with the job fund loan application form, business plan, resident registration abstract, financial statements or VAT taxable standard confirmation, etc. Applications are accepted year-round until funds are exhausted. Related forms are posted on the district website under ‘District News (Yongsan-gu Job Fund)’.

The district holds a fund operation review committee around the 20th of each month to select loan recipients. Preliminary review items include whether the applicant is a small or medium enterprise or small business owner, whether they are a disabled or women-owned business, promising SMEs, venture companies, and whether they hold industrial property rights. Loans are disbursed around the 30th of the month following the application date.

The district established and promulgated the ordinance for the installation and operation of the district job fund at the end of 2018. As of 2021, the fund size reaches 12 billion KRW.

In addition to loan support, the district is also conducting a public-private cooperation job creation contest project using 300 million KRW from the job fund. This project accepts applications from corporations, non-profit organizations, etc., and the district supports the budget.

In the first half of this year, four projects will be operated: ▲ Air conditioner installation and maintenance technician training course (Korea Polytechnic University Seoul Jeongsu Campus) ▲ AI robot embedded developer training course (Yongsan Women's Human Resources Development Center) ▲ AI coding instructor training course (Seoul Jungbu Technical Education Institute) ▲ Personal protection officer qualification acquisition course (Asia Aviation Vocational School).

Seongjanghyun, Mayor of Yongsan-gu, said, “We provide low-interest loans to youth enterprises in the region struggling due to the novel coronavirus infection (COVID-19),” and added, “We hope for active interest and applications from young people.”

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