Seongdong-gu Provides 4 Billion Won Emergency Support to Small and Medium Enterprises and Small Business Owners Struggling Due to COVID-19

This Year, 4 Billion Won Loaned in First Half Out of 7 Billion to Support SMEs, Small Business Owners, and Self-Employed... From 15th to 26th, District Loan Support with Historic Low 1% Interest Rate, 4-Year Loan Period, Priority for Certain Companies

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Won-oh) will provide a loan of 4 billion KRW from the first half Small and Medium Business Development Fund from the 15th to the 26th.

In response to COVID-19 and the prolonged social distancing, the district is actively supporting small and medium-sized enterprises (SMEs) and small business owners who have suffered significant economic damage by offering the lowest-ever interest rate of 1%.

Last year, the district provided interest support of 6.89 billion KRW to 142 SMEs using district funds, and 260 million KRW in bank cooperation funds to 13 companies.

This year, a total of 7 billion KRW will be supported, with 4 billion KRW in the first half and 3 billion KRW in the second half. The loan period is four years, with a one-year grace period followed by three years of equal repayments.

The application amount varies depending on the target. For regular loans in the first half, SMEs including corporations can apply for amounts ranging from 20 million KRW up to 200 million KRW. COVID-19 loans available to small business owners and self-employed individuals can be applied for up to 20 million KRW.

Eligible applicants are SMEs and small business owners with their main office or factory located in Seongdong-gu. Priority is given to companies that have maintained employment without layoffs after COVID-19, have over 10 years of business experience in Seongdong-gu, women-owned businesses, companies located in knowledge industry centers, venture companies, social enterprises, youth enterprises, and companies certified for job creation. However, closed businesses, companies unable to obtain bank loans, and consumer-oriented businesses such as luxury and entertainment are excluded.

Companies wishing to apply for loans should refer to the notices and announcements on the Seongdong-gu Office website, bring the required documents, visit Shinhan, Woori, KEB Hana, or Industrial Bank of Korea for prior consultation, and then apply in person at the relevant department of Seongdong-gu Office within the application period. After the application deadline, the operating committee will review and select the supported companies, with loan disbursement scheduled for the end of March.

Jeong Won-oh, Mayor of Seongdong-gu, stated, “Through low-interest loan support, we aim to provide practical help such as easing financing and interest burdens to SMEs and small business owners struggling with the ongoing economic downturn and business operations. We will do our best to support the stabilization of local businesses by utilizing the Seongdong-gu Small and Medium Business Development Fund.”

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