Gangnam-gu Seeks Operators for 'Gangnam Startup Fund No. 2'... Seocho-gu Provides 4 Billion KRW SME Development Fund Loans

[Seoul District News] March 17-18 Recruitment of Executive Union Members through Document and Presentation Evaluation, Final Selection by End of March... Seocho-gu Supports Up to 200 Million KRW per Company with 1.5% Annual Interest Rate and Collaborates with Commercial Banks to Subsidize Loan Interest up to 2% for Loans up to 200 Million KRW... Guro-gu Supports 'Unemployed Youth, Small Businesses, and Small Merchants'... Third Anniversary of 'I-Mom Gangdong' Invites Usage Stories Contest

[Asia Economy Reporter Park Jong-il] Gangnam-gu (District Mayor Jung Soon-gyun) is recruiting general partners to establish and operate the ‘Gangnam Startup Fund No. 2’ on the 17th and 18th.

The selected fund management company must raise at least 20 billion KRW, including the district’s investment of 1 billion KRW, and the operation period is 8 years from this year to 2029 (4 years investment, 4 years recovery). After the first and second rounds of document and presentation evaluations, the final selection will be made at the end of March. Application documents can be found on the Gangnam-gu website.

Last year, the district invested 1 billion KRW to establish the first fund worth 53 billion KRW, invested 9 billion KRW in four local companies, and is now expanding the investment scope nationwide. This year’s second fund increases the mandatory investment ratio in local companies from 200% last year to over 500%, raising expectations among Gangnam-gu entrepreneurs dreaming of unicorn companies.

Gangnam-gu, designated as a ‘Venture Business Promotion Zone’ in January, has 1,845 venture companies, accounting for 17.7% of the 10,450 venture companies located in Seoul. Among the 18 domestic unicorn companies valued at over 1 trillion KRW, 11, including Kurly and Zigbang, are located here.

Jung Soon-gyun, Mayor of Gangnam-gu, said, “With the establishment of the second startup fund following last year, Gangnam-gu is leading the revitalization of the venture investment ecosystem and the ‘second venture boom.’ We will continue to build solid infrastructure and support to grow beyond the ‘Mecca of Korean Unicorn Companies’ into the world’s best city.”

Seocho-gu supports ‘Small and Medium Enterprise (SME) Development Fund Loans’ and ‘Commercial Bank Cooperative Fund Loan Interest’ for local SMEs struggling with financial difficulties due to COVID-19.

First, the SME Development Fund Loan will provide up to 200 million KRW per company for facility funds, operating funds, and technology development funds, with a total of 4 billion KRW from the district budget. The agreed interest rate is 1.5% per annum, and the repayment period is a 1-year grace period followed by 3 years of equal installments.

Additionally, the district supports ‘Commercial Bank Cooperative Fund Loan Interest’ to ease the burden of loan interest for SMEs. This project supports part of the interest burden when companies receive loans from banks contracted with the district. The cooperative funds total 15 billion KRW, with 10 billion KRW from Woori Bank and 5 billion KRW from Shinhan Bank. For loans up to 200 million KRW per company, the district fully supports loan interest up to 2% depending on the company’s credit rating. The repayment period is a 1-year grace period followed by 3 years of equal installments.

The applicants for both projects must be SMEs with their main office registered in Seocho-gu or manufacturing companies registered in Seocho-gu as of the application date. However, companies that are temporarily closed or closed, have overdue local taxes or fines, or are involved in gambling, entertainment, luxury, or speculative activities inconsistent with the fund’s purpose are excluded. Especially, companies currently repaying or within the repayment period of the SME Development Fund Loan are also excluded.

Consultations and applications for the SME Development Fund Loan support are available at Woori Bank Yangjae Station branch, and for the Commercial Bank Cooperative Fund Loan Interest support at Woori Bank Yangjae Station branch and all Shinhan Bank branches in Seocho-gu. The final support targets and amounts will be decided through the Seocho-gu SME Development Fund Operation Committee’s review. Both projects will continue support until funds are exhausted.

The district has continuously worked to stabilize the local SMEs’ economy. Since 1993, it has supported a total of 487 companies with 61.7 billion KRW through the SME Development Fund Loan. Since the outbreak of COVID-19 in 2020, it has also operated the Commercial Bank Cooperative Fund Loan Interest support project, supporting loan interest for 16 companies with about 2.2 billion KRW in loans until last year.

Park Woo-man, Director of the Job and Economy Division, said, “We will continue to strive to stabilize SME management with various supports to help SMEs overcome the crisis caused by the prolonged COVID-19 pandemic.”

Guro-gu (District Mayor Lee Sung) is providing support for unemployed youth and small businesses and merchants struggling due to COVID-19.

First, Guro-gu will accept applications for the ‘Unemployed Youth Employment Incentive’ from April 14 to May 13.

The support targets youth aged 19 to 34 (born 1987 to 2003) registered as residents in Guro-gu, who are unemployed within 2 years after graduation (excluding military service period) and not enrolled in employment insurance. Those who moved from other Seoul districts to Guro-gu after the announcement date (March 14, 2022) may apply even if enrolled in employment insurance, provided they work less than 26 hours per week or have short-term employment of 3 months or less. However, university (graduate) students, students on leave, unemployment benefit recipients, and current military personnel are excluded.

Applicants must submit documents such as resident registration transcript, employment insurance qualification history, and final graduation certificate by registering on the Seoul Youth Portal website.

Results will be announced after May, and selected applicants will receive 500,000 KRW worth of Guro Love Gift Certificates sequentially.

To benefit more small businesses and merchants, the ‘Quarantine Supplies Support Fund’ application period has been extended to April 25.

The support targets 16 industries subject to mandatory application due to the full expansion of the quarantine pass, with sales corresponding to small businesses and merchants, and not closed or suspended as of the application date.

Receipts for quarantine-related items such as QR code terminals, thermometers, sanitizers, and masks purchased after December 3 last year can be submitted for support up to 100,000 KRW per business.

Applicants can submit supporting documents on the Seoul Quarantine Supplies website. Detailed information on eligibility, application methods, and required documents can be found in the news section of the district office website.

A Guro-gu official said, “We hope this support project helps youth and small business owners struggling with COVID-19. We will continue to prepare various support measures beneficial to residents.”

‘Childcare infrastructure enjoyed within 15 minutes from your home’ is the motto of ‘I-Mom Gangdong,’ a hot place among mothers in Gangdong-gu.

Unlike typical kids’ cafes, this place operates different concepts by branch, offering programs for infants and toddlers, as well as facilities such as toy libraries and open playgrounds, making it a complex community childcare facility.

Members can rent toys and books at low cost and use play spaces for free, making reservations so competitive that the term ‘rapid click war’ is apt. Despite limited users due to COVID-19, the number of users has surpassed 50,000, demonstrating its popularity.

Celebrating its 3rd anniversary this year, Gangdong-gu (District Mayor Lee Jung-hoon) is holding a story contest event to widely promote ‘I-Mom Gangdong’ through vivid user experience stories.

The contest has two themes: precious memories made through ‘I-Mom Gangdong’ or personal stories about repeatedly failing to reserve the open playground and the determination to use it in March.

The submission period is from the 10th to the 15th, and entries can be submitted via Gangdong-gu Office’s official Instagram. Any Gangdong-gu resident can participate, and entries can be submitted for both themes, but duplicate winning is not allowed.

Winners will receive chicken gifticons (10 people) according to the theme or be invited to the 3rd anniversary events held on the 21st and 28th at I-Mom Gangdong branches in Gildong, Amsa Park, Cheonho Park, and Godeok.

Starting with the Seongnae branch in 2019, ‘I-Mom Gangdong’ quickly expanded to eight locations within two years by region. A 2021 user satisfaction survey showed 93.3% of users would recommend I-Mom Gangdong to others, and 81% were satisfied with convenient access. Users’ residences were evenly distributed by region: Cheonho-dong 18.2%, Seongnae-dong 15.6%, Sangil-dong 11.6%, etc.

Notably, the open playground’s user satisfaction was very high at 81.3%. This likely reflects the advantage of ‘I-Mom Gangdong’ being free and accessible nearby, especially since there are few facilities for infants under 12 months, the main user group.

Lee Jung-hoon, Mayor of Gangdong-gu, said, “We thank the residents who have used and supported I-Mom Gangdong on its 3rd anniversary. We will continue to systematically promote various childbirth and childcare-friendly policies to establish Gangdong-gu as a great place to raise children.”

For inquiries, visit the Gangdong Children’s Center website or contact the Gangdong-gu Office Childcare Support Division.

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