Lee Dong-jin, Chairman of the Seoul District Mayors' Council, Signs Agreement for Seoul City Safe Finance Loan Support Cooperation

Published 09 Jun.2021 06:48(KST)

Seoul District Mayors Association Chairman Lee Dong-jin (Dobong-gu Mayor) Signs Seoul's 4-No Worry Financial Loan Support Agreement on the 8th... '4-No' Means 'No Interest, No Guarantee Fee, No Collateral, No Paper Documents'... Interest-Free Loans for Small Businesses in Autonomous Districts and Additional Support for Small Businesses Struggling Due to COVID-19

Lee Dong-jin, Chairman of the Seoul Metropolitan Council of District Mayors (Mayor of Dobong-gu), group commemorative photo for the Seoul 4-No Worry Financial Loan Support Business Agreement (fourth from the right in the photo) (June 8, 2021, Mapo Seoul Credit Guarantee Foundation Headquarters) Photo by Seoul Shin Yongbojeungjaedan

[Asia Economy Reporter Park Jong-il] Lee Dong-jin, Chairman of the Seoul Metropolitan Council of District Mayors (Dobong District Mayor), signed a business agreement on the 8th to support Seoul's 4-No Worry Financial Loans, providing additional support to small business owners suffering from severe financial and management difficulties due to COVID-19, along with 'Interest-Free Loans for Small Business Owners in Autonomous Districts.'

The signing ceremony held at the Seoul Credit Guarantee Foundation headquarters in Mapo-gu, Seoul, was attended by Lee Dong-jin, Chairman of the Seoul Metropolitan Council of District Mayors; Oh Se-hoon, Mayor of Seoul; Kim In-ho, Chairman of the Seoul Metropolitan Council; Han Jong-kwan, Chairman of the Seoul Credit Guarantee Foundation; and heads of five banks (Shinhan, Woori, Kookmin, Nonghyup, Hana).

The '4-No' refers to 'No Interest, No Guarantee Fee, No Collateral, No Paper Documents.' The 4-No Worry Financial Loan supports small and medium-sized enterprises and small business owners located in Seoul with a personal credit score of 595 or higher (formerly credit grade 7), providing up to 100 million KRW per business (up to 20 million KRW without limit screening).

The loan period is a total of five years, with the first year provided interest-free, and from the second year, 0.8% of the interest is subsidized.

Those wishing to apply for the 4-No Worry Financial Loan can apply non-face-to-face from the 9th via the Seoul Credit Guarantee Foundation website or the Hana Bank ‘Hana One Q Enterprise’ mobile application. Seoul plans to gradually expand non-face-to-face application channels.

Meanwhile, the same conditions will be applied to recipients of the 'Interest-Free Loan Support for Small Business Owners in Autonomous Districts,' which has been implemented in 25 autonomous districts since April. The 0.5% guarantee fee already paid will be refunded, and 0.8% of the interest will be subsidized from the second year. Even if interest-free loan support was first received from an autonomous district, if the guarantee limit remains, Seoul's 4-No Worry Financial Loan support is available.

Chairman Lee Dong-jin of the District Mayors' Council said, “Seoul's 4-No Worry Financial Loan support, along with interest-free loan support for small business owners in autonomous districts, provides stronger support for small business owners in crisis. We hope that the loan support from the 25 autonomous districts and Seoul will be a pillar to help small business owners overcome these difficult times caused by the prolonged COVID-19 pandemic.”