Seocho-gu Provides 20 Billion Won Interest-Free Loans to Small Business Owners

Lowering Loan Thresholds Despite Insufficient Collateral: Emergency Management Funds of 20 Billion KRW Provided Interest-Free for One Year to Over 1,000 Small Business Owners Operating for More Than 6 Months

[Asia Economy Reporter Jongil Park] Seocho-gu (Mayor Eunhee Jo) is implementing an interest-free loan support program worth 20 billion KRW for local small business owners who have been severely affected by the prolonged COVID-19 pandemic and urgently need financial aid.

This interest-free loan support project for small business owners is carried out through a business agreement with the Seoul Credit Guarantee Foundation, Shinhan Bank, and Woori Bank. It lowers the loan barriers even for those lacking collateral and provides a total of 20 billion KRW in emergency operating funds interest-free for one year to about 1,000 local small business owners who have operated their businesses for more than six months.

The loan limit is up to 20 million KRW, with a guarantee fee of 0.5%, a loan period of 5 years, and repayment in equal installments over 4 years after a 1-year grace period. The program will continue until the 20 billion KRW fund limit is exhausted.

Starting May 17, applicants can apply for special guarantees at designated branches of Woori Bank and Shinhan Bank within Seocho-gu. The banks will approve loans considering the applicant’s guarantee limit and other factors.

The district office will fully cover the interest on the loan for one year, effectively providing an interest-free benefit. After this period, a variable interest rate of about 2.5% will apply.

Eligible applicants are small enterprises and small business owners located in Seocho-gu who have been in operation for more than six months and have a credit rating of grade 7 or higher (credit score of 595 or above).

Applications can be submitted by bringing the required documents to any of the 11 designated branches of Shinhan Bank and Woori Bank within the district. For branch-specific contact information and detailed information, please refer to the announcement on the district’s official website.

Seocho-gu Mayor Eunhee Jo stated, “We hope that small business owners going through difficult times will not lose hope and can continue their livelihoods with this urgent financial support, helping the local economy regain vitality. We will continue to make multifaceted efforts to stabilize the management of small business owners through various livelihood measures.”

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