What Is the Secret Behind Gwangjin-gu Small Business Owners Leading Seoul in Interest-Free Loan Support Rate?

Seoul Credit Guarantee Foundation Guarantee Usage Rate at 39.6%, Ranked 1st Among Seoul Districts... - Gwangjin-gu Provides Nationwide First Interest-Free and Guarantee-Free Special Loans Since Last Year

[Asia Economy Reporter Jongil Park] Gwangjin-gu (Mayor Kim Seon-gap) recorded a 39.6% utilization rate of Seoul Credit Guarantee Foundation guarantees, ranking first in Seoul for the ‘Interest-Free Loan Support Rate for Small Business Owners’.

According to a survey by the Seoul Credit Guarantee Foundation, among 23,270 businesses located in Gwangjin-gu, 9,221 used the foundation’s services, resulting in a utilization rate of 39.6% for loans through the foundation, the highest among Seoul’s autonomous districts.

This is interpreted as the result of Gwangjin-gu’s extraordinary measures to support small business owners who were hit hard by COVID-19.

Last year, the district implemented the ‘Gwangjin-type Small Business Owner Loan Support’ for the first time nationwide, offering up to 20 million KRW with interest and guarantee fees waived for one year. It also collaborated with commercial banks such as Hana Bank and Kookmin Bank to jointly fund a total guarantee scale of 40.6 billion KRW, supporting a total of 32.2 billion KRW.

In particular, from April to July last year, the district set up the ‘Gwangjin-type Small Business Owner Support Center’ in the district office plaza to provide one-stop loan services for residents.

Through the operation of the center, the district greatly simplified the complicated loan application procedures, receiving high praise with up to 215 daily phone and in-person consultations.

Following last year, the district has prepared a total of 32 billion KRW this year to continue the ‘Interest-Free Loan Support for Small Business Owners’ project, and in April, it collaborated with Kookmin Bank, Hana Bank, and Shinhan Bank to raise an additional 20 billion KRW. As of the end of April, a total of 19.9 billion KRW has been supported.

Kim Seon-gap, Mayor of Gwangjin-gu, said, “In the unprecedented situation of COVID-19, it is no exaggeration to say that thanks to the participation and sacrifice of self-employed people and small business owners, as well as the cooperation of the Credit Guarantee Foundation and commercial banks, we were able to protect the local economy and maintain a minimum level of daily life.” He added, “Going forward, Gwangjin-gu plans to provide thorough support so that residents can continue to overcome crises and turn them into opportunities for growth.”

Small business owners wishing to apply for the ‘Interest-Free Loan Support’ provided by Gwangjin-gu can visit and inquire at one of the Kookmin Bank, Shinhan Bank, or Hana Bank branches located within Gwangjin-gu.

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