Gangdong-gu Provides 20 Million KRW Loan Support to Small and Medium Businesses Facing Sales Decline Due to COVID-19

Special Guarantee Credit Loan Financing Expanded by 36 Billion Won to Strengthen Financial Support for SMEs and Small Business Owners... Loan Limit Within 20 Million Won, Repayment Terms: 1-Year Grace Period, 4-Year Installment Repayment

[Asia Economy Reporter Park Jong-il] Gangdong-gu (District Mayor Lee Jeong-hoon) has been providing a special credit guarantee loan of 36 billion KRW to support small and medium-sized enterprises (SMEs) and small business owners in the area who are facing financial difficulties due to prolonged COVID-19 and poor sales, starting from the 21st until funds are exhausted.

To this end, Gangdong-gu signed a business agreement with Seoul Credit Guarantee Foundation, Woori Bank, Shinhan Bank, and Hana Bank, expanding the loan scale from 18 billion KRW last year to 36 billion KRW this year.

The interest incurred over one year will be fully supported by Gangdong-gu.

The eligible applicants are SMEs and small business owners located in Gangdong-gu with more than six months since business registration, whose representative’s credit score is 595 or higher (equivalent to grades 1 to 7 in the district rating system).

The loan limit per company is up to 20 million KRW, with repayment terms of a 1-year grace period followed by 4 years of installment repayment.

SMEs and small business owners wishing to apply for the loan support can visit branches of Woori Bank, Shinhan Bank, and Hana Bank within Gangdong-gu from May 21 for consultation and application submission.

After application submission, the loan support will be provided following procedures such as verification of the issuance of a guarantee certificate by the Seoul Credit Guarantee Foundation.

Lee Jeong-hoon, Mayor of Gangdong-gu, said, “We hope this special recommended credit guarantee loan support will contribute to overcoming financial difficulties and resolving management challenges for SMEs and small business owners,” adding, “The district will continue to do its best to support SMEs and small business owners.”

For more detailed information about this special credit guarantee loan support, please contact Woori Bank, Shinhan Bank, Hana Bank branches in Gangdong-gu, Seoul Credit Guarantee Foundation, or Gangdong-gu Labor Rights Center.

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