Gangnam-gu Provides 28.7 Billion KRW Interest-Free and Collateral-Free Loans to Small Business Owners

Interest-Free and Unsecured... From the 14th, Shinhan and Woori Bank Accept Applications for Up to 20 Million KRW per Company

[Asia Economy Reporter Park Jong-il] Gangnam-gu (District Mayor Jeong Soon-gyun) will provide loans of up to 20 million KRW per business for one year without collateral or interest starting from the 14th to small business owners facing financial difficulties due to the prolonged COVID-19 pandemic.

This project was planned to support small business owners who are experiencing financial burdens due to decreased sales and increased fixed costs such as rent.

The loan scale is 28.7 billion KRW. To this end, the district allocated 1.6 billion KRW in the supplementary budget last month, and Shinhan Bank and Woori Bank each contributed 500 million KRW and 200 million KRW respectively to the Seoul Credit Guarantee Foundation.

The support targets are small enterprises and small business owners within the district who have been registered for more than six months and have annual sales of 500 million KRW or less, or whose sales have decreased compared to the previous year despite exceeding 500 million KRW.

The interest rate is zero for one year, after which a variable interest rate applies from the second year, and the repayment period is five years (one-year grace period and four years of installment repayment). Early repayment fees apply.

Interested businesses can apply by visiting designated branches of Shinhan Bank and Woori Bank. Support is on a first-come, first-served basis until funds are exhausted. For detailed information on eligibility, application methods, and bank branch information, please refer to the Gangnam-gu website (Notices).

Meanwhile, from January to April, the district utilized 20 billion KRW from the Small and Medium Enterprise Development Fund, the largest among the 25 autonomous districts in Seoul, to provide 10 billion KRW in the first round at a fixed annual interest rate of 0.8%.

The loan limit is up to 300 million KRW per business, with a one-year grace period and four years of equal installment repayments.

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