Seodaemun-gu Small Business Guarantee Limit 50 Million KRW · Unsecured Special Guarantee with Annual Interest Rate Below 2%

Unsecured Special Guarantee of 13 Billion KRW at Annual Interest Rate Below 2%... Seodaemun-gu Contributes 500 Million KRW, Signs Business Agreement with Woori Bank and Seoul Credit Guarantee Foundation... Interest-Free Loans of 2 Billion KRW for SME Development Fund Available Until Year-End

[Asia Economy Reporter Jong-il Park] Seodaemun-gu (Mayor Moon Seok-jin) is implementing ‘Unsecured Special Guarantee’ and ‘Interest-free Loans from the Small and Medium Business Development Fund’ to stabilize the management and alleviate financial difficulties of local small and medium-sized enterprises (SMEs) and small business owners struggling due to the prolonged COVID-19 pandemic.

The ‘Unsecured Special Guarantee’ is designed for small business owners lacking collateral capacity and will be implemented on a scale of 13 billion KRW.

The guarantee limit per person is 50 million KRW with an annual interest rate of 2% or less. Borrowers can choose between a 1-year grace period followed by 4 years of equal installment repayments or a 2-year grace period followed by 3 years of equal installment repayments.

For this guarantee, Seodaemun-gu contributed 500 million KRW and Woori Bank contributed 580 million KRW to the Seoul Credit Guarantee Foundation, and a business agreement was also signed.

Additionally, following last year, the district will provide interest-free loans from the ‘Small and Medium Business Development Fund’ amounting to 2 billion KRW within a limit of 30 million KRW per person, temporarily until the end of this year.

Existing borrowers with loan balances of 30 million KRW or less can also receive the interest-free benefit. For amounts exceeding 30 million KRW, the loan interest rate will be reduced from 1.8% to 0.8% until December 31 of this year.

Applications for the unsecured special guarantee and the Small and Medium Business Development Fund loans can be submitted until funds are exhausted.

Applicants should bring a copy of their business registration certificate and financial statements proving sales performance and visit the Woori Bank Seodaemun-gu Office branch for consultation.

Moon Seok-jin, Mayor of Seodaemun-gu, said, “I hope this support will be of some help to small business owners struggling with management stability due to the prolonged COVID-19 pandemic.”

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