Gangdong-gu Expands 'Interest-Free Loan Support' to Relieve Small and Medium Enterprises and Small Business Owners

Seoul's Largest District Secures 36 Billion Won Loan Support... Selected for Ministry of the Interior and Safety's 'Resident Life Innovation Case Expansion Project' with 30 Million Won Funding

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Jeong-hoon) has been selected as a finalist in the Ministry of the Interior and Safety's '2021 Resident Life Innovation Case Expansion Project' for its 'Special Credit Guarantee Loan Support' program, which was operated for small and medium-sized business owners suffering from financial difficulties due to the prolonged COVID-19 pandemic, securing a national subsidy of 30 million KRW.

The district quickly provided loans worth 18 billion KRW last year to small and medium-sized enterprises and small business owners facing financial difficulties due to COVID-19, and this year secured 36 billion KRW, the largest amount among Seoul's autonomous districts, implementing special guarantee recommendations and one-year interest-free loan support.

The support targets small and medium-sized enterprises and small business owners located in Gangdong-gu who have been registered for more than six months and are eligible for guarantees from the Seoul Credit Guarantee Foundation (with a personal credit score of 595 or higher). The loan limit is up to 20 million KRW per business, with a one-year grace period followed by four years of installment repayment.

Small and medium-sized enterprises and small business owners wishing to apply for loan support can visit local Woori Bank or Shinhan Bank for consultation and application. After applying, they will receive loan support following procedures such as confirmation of the issuance of a guarantee certificate from the Seoul Credit Guarantee Foundation.

Lee Jeong-hoon, Mayor of Gangdong-gu, said, "Being selected for the Ministry of the Interior and Safety's 'Resident Life Innovation Case Expansion Project' is a model case of proactive administration that preemptively responded to overcoming management crises by strengthening financial support for small and medium-sized enterprises and small business owners. We will continue to support small and medium-sized enterprises and small business owners in our district."

The district signed a business agreement with the Seoul Credit Guarantee Foundation, Woori Bank, Shinhan Bank, and Hana Bank, and began accepting applications in May. Currently, loan applications have reached 22 billion KRW. Hana Bank's loan limit has already been exhausted.

For more detailed information about the special credit guarantee loan support, inquiries can be made at local Woori Bank, Shinhan Bank, Seoul Credit Guarantee Foundation, or Gangdong-gu Labor Rights Center.

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