Small Business Owners in Yeongdeungpo-gu Can Borrow Up to 50 Million KRW with Interest Rates Below 2%

Yeongdeungpo-gu Provides 4.8 Billion Won Special Guarantee Support for Small Business Owners... On the 17th, Seoul Credit Guarantee Foundation Signs Special Guarantee Agreement with Woori and Hana Banks for Small Business Owners

[Asia Economy Reporter Jong-il Park] Yeongdeungpo-gu (District Mayor Chae Hyun-il) signed a business agreement on the 17th with two financial institutions (Woori Bank, Hana Bank) including the Seoul Credit Guarantee Foundation to provide special guarantees supporting small business owners affected by COVID-19 in celebration of Small Business Day.

The agreement ceremony was held at 10 a.m. in the Planning Situation Room on the 3rd floor of the district office main building, attended by Yeongdeungpo-gu Mayor Chae Hyun-il, Han Jong-kwan, Chairman of the Seoul Credit Guarantee Foundation (hereafter Guarantee Foundation), Kim Hye-sook, Head of Gangseo Business Division at Woori Bank, and Lee Hyun-sook, Western Region Representative of Hana Bank.

Through this agreement, the district will be the first among Seoul’s autonomous districts this year to cooperate with banks and provide special guarantee support worth 4.8 billion KRW.

The agreement stipulates that the district and the two banks will contribute funds to the Guarantee Foundation (2 billion KRW from the district, 1 billion KRW each from the banks) to support guarantees for small business owners in Yeongdeungpo-gu who lack collateral.

The guarantee limit will be 12 times the contribution amount, totaling 4.8 billion KRW.

When small business owners apply for special credit guarantees through the Guarantee Foundation, the district will recommend and issue guarantee certificates to them via the Guarantee Foundation. Small business owners can then use the issued guarantee certificates to obtain loans averaging 50 million KRW, up to a maximum of 200 million KRW, from Woori Bank or Hana Bank.

With this special guarantee support, small business owners will be able to secure funds at an interest rate of approximately 2%.

The repayment period options have been diversified according to the business’s preference: ▲1-year grace period followed by equal installments over 2, 3, or 4 years ▲2-year grace period followed by equal installments over 3 years ▲lump-sum repayment at 2-year maturity.

The eligible applicants are small business owners located in Yeongdeungpo-gu who lack sufficient collateral. Those who are delinquent or engaged in luxury, entertainment, or nightlife industries are excluded. For inquiries regarding guarantees, contact the Yeongdeungpo branch of the Seoul Credit Guarantee Foundation.

Yeongdeungpo-gu Mayor Chae Hyun-il stated, “Due to the ongoing management difficulties caused by the COVID-19 crisis, the hardships faced by small business owners are intensifying. We will do our best to alleviate financial difficulties through cooperation with banks and support the management stability and business recovery of small business owners who uphold the local economy.”

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