Yangcheon-gu, Small Business Development Fund Increased from 2.5 Billion to 3.5 Billion in the Second Half of the Year

Support budget increased by 40% from 2.5 billion KRW to 3.5 billion KRW... Loan interest rate 1.5% per year, repayment terms 2-year grace period, 3-year equal installment repayment

[Asia Economy Reporter Park Jong-il] Yangcheon-gu (Mayor Kim Soo-young) is providing loans from a 3.5 billion KRW Small and Medium Enterprise (SME) Development Fund to support the new leap of SMEs and small business owners facing business difficulties due to COVID-19.

In preparation for the increased demand for funds caused by the prolonged economic downturn, the district expanded the loan scale for the second half of 2021 by 40%, from 2.5 billion KRW in the first half to 3.5 billion KRW in the second half.

Eligible applicants include ▲ manufacturers registered with factories in Yangcheon-gu ▲ companies with their main office in Yangcheon-gu and factories registered within the jurisdiction of Seoul Metropolitan City ▲ operators of knowledge service industries related to manufacturing ▲ small enterprises and small business owners ▲ wholesale and retail businesses and other industries (excluding some sectors).

Loan conditions are an annual interest rate of 1.5%, with a 2-year grace period and 3-year equal installment repayment. Support is up to 300 million KRW per manufacturing company and up to 80 million KRW for other wholesale and retail businesses. The funds must be used for facility investment, working capital, or technology development.

Companies wishing to apply can download the loan application form and business plan templates from the district office website’s notices and announcements section, consult in advance with financial institutions (Woori Bank Yangcheon-gu Office Branch and Seoul Credit Guarantee Foundation Yangcheon Branch), and then apply to the district office’s Job and Economy Division from July 5 to August 6.

Loan recipients will be finalized through the Fund Operation Committee’s review, and loans can be obtained from September via Woori Bank Yangcheon-gu Office Branch.

Additionally, small business owners in the area who urgently need funds but face difficulties applying for loans due to insufficient collateral can receive smooth loans through special credit guarantees.

If the district recommends SMEs and small business owners requiring guarantees to the Seoul Credit Guarantee Foundation, the foundation will provide guarantees so that the companies can receive low-interest financial support. For more details, inquiries can be made to the district office’s Job and Economy Division.

Kim Soo-young, Mayor of Yangcheon-gu, stated, “We hope that the significantly expanded SME Development Fund loan support for SMEs and small business owners struggling due to COVID-19 will help their business recovery,” and added, “We will continue to actively promote various policies to revitalize the local economy.”

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