Dongdaemun-gu, 5 Billion KRW Emergency Loans for SMEs and Small Business Owners

Applications open from the 25th to September 30th, loans available for low credit rating small businesses... Up to 20 million KRW for small business owners, up to 30 million KRW for SMEs... Loans supported at 0.8% annual interest rate

[Asia Economy Reporter Jongil Park] Dongdaemun-gu (Mayor Yoo Deok-yeol) is implementing a loan program worth 5 billion KRW to support small and medium-sized enterprises (SMEs) and small business owners struggling due to the prolonged COVID-19 pandemic.

From the 25th until September 30th, emergency loans can be applied for at a low annual interest rate of 0.8%.

Small business owners can receive emergency loans up to 20 million KRW, and SMEs up to 30 million KRW. In cooperation with Woori Bank and the Seoul Credit Guarantee Foundation, even small businesses with low credit ratings that have difficulty obtaining loans will be eligible.

The emergency loan support targets SMEs and small business owners operating within Dongdaemun-gu with registered business licenses. However, the following are excluded: ▲non-profit individual businesses and corporations ▲businesses with tax arrears ▲financial, insurance, and real estate industries ▲golf practice ranges, lodging, pubs, restaurants with exclusive areas over 330㎡ ▲precious metals and game centers.

Small business emergency microloans are available to small business owners with annual sales under 300 million KRW (under 100 million KRW if less than one year since establishment) who meet at least one of the following criteria: ▲personal credit score between 351 and 870 (NICE Information Service, former credit grades 4-9) ▲low-income class ▲simplified taxpayers ▲multicultural or multi-child households, with a maximum loan limit of 20 million KRW.

General loans for SMEs are available to companies in ▲manufacturing ▲export ▲women-owned businesses ▲disabled-owned businesses ▲venture companies that have been established for more than three months, supporting up to 30 million KRW for labor costs and rent (based on one year).

Applicants wishing to apply for loans should visit the Small Business Support Team on the 2nd basement floor of Dongdaemun-gu Office with the required documents between the 25th and September 30th.

Required documents include the loan application form, consent form for use of personal credit information, copy of business registration certificate, copy of lease contract for business and residence (if the business is rented), small business confirmation documents (such as small business confirmation certificate), value-added tax standard proof, national and local tax payment certificates, Woori Bank credit verification or low-income class confirmation or family relation certificate (if applicable), etc.

For more details, contact the Small Business Support Team at Dongdaemun-gu Office.

From 2020 to the first half of 2021, Dongdaemun-gu provided loan support totaling 16.548 billion KRW to 1,030 businesses through micro emergency loans and general SME loans, supported 396 million KRW in interest subsidies related to market cooperative fund loans, and contributed 1.3 billion KRW to the Seoul Credit Guarantee Foundation to establish credit guarantee funds for low-credit borrowers.

Mayor Yoo Deok-yeol of Dongdaemun-gu stated, “We aim to fully utilize the SME development fund to support local SMEs and small business owners who are struggling due to decreased sales from the prolonged COVID-19 pandemic, so they do not give up and can continue their livelihoods. We will especially do our best to support small businesses facing financial difficulties.”

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