Seoul Gangseo-gu Provides 8 Billion Won Scale SME Development Fund Support (0.8%)

Small and Medium Enterprises and Small Business Owners Registered in District Eligible for Up to 300 Million KRW per Company with Temporary 0.8% Ultra-Low Interest Rate This Year

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

The district announced that it will carry out a loan support project using the SME Development Fund totaling 8 billion KRW this year for SMEs and small business owners.

In particular, although the SME Development Fund loan interest rate is 1.5% per annum, considering the COVID-19 situation, an ultra-low interest rate of 0.8% per annum will be provided temporarily this year as well, following last year.

This aims to alleviate the financial difficulties of SMEs and small business owners suffering from the prolonged COVID-19 crisis and to revitalize the local economy.

This year, the SME Development Fund can support up to 300 million KRW per company (50 million KRW for small business owners).

The support targets are SMEs registered with factories in the region, venture companies and Inno-Biz headquartered in Gangseo-gu, and small business owners with business registration in the region. Applicants must have been registered for more than one year as of the application date and must have sales performance and collateral capability.

The support conditions assume the funds will be used for facility funds, operating funds, or technology development funds, with a repayment plan of a 1-year grace period followed by 4 years of equal installments.

Applications are accepted until funds are exhausted. Interested companies and small business owners can visit the Gangseo-gu Office Regional Economy Division and submit the application form along with a business plan, a copy of the business registration certificate, and other related documents.

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

Supported companies will be selected based on the credit collateral capacity inquiry results from financial institutions, and once selected, they can immediately receive loan support.

A district official said, “We hope this loan support will help alleviate the financial difficulties of SMEs struggling due to the COVID-19 crisis,” and added, “We will continue to discover and promote various SME support policies.”

Meanwhile, last year, the district supported 109 companies with over 5.9 billion KRW from the SME Development Fund and made efforts to support SMEs and small business owners by temporarily deferring the repayment of principal installments in the first half of this year.

For inquiries, please contact the Gangseo-gu Office Regional Economy Division.

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