Itaewon Commercial Area Loan Support Expanded to Include Small and Medium Enterprises... Effective June 6

Minister Lee Young Holds On-Site Meeting in Itaewon
Plans to Expand Eligibility for Disaster Confirmation Certificates
One-Stop Support Center Issues Over 80 Certificates

[Asia Economy Reporter Kim Bo-kyung] To stabilize the Itaewon commercial district, the scope of disaster confirmation certificate issuance will be expanded from small business owners to include small and medium-sized enterprises (SMEs). Emergency management stabilization funds will be provided to affected SMEs at a low interest rate of 1.9% per annum, up to a maximum of 1 billion KRW.

On the 3rd, Lee Young, Minister of the Ministry of SMEs and Startups, visited the 'Itaewon Commercial District One-Stop Support Center' located in Yongsan-gu Office, Seoul, and held an on-site meeting with related organizations. While inspecting the center’s operations, Minister Lee encouraged the staff dispatched from Yongsan-gu and the Small Enterprise and Market Service who are working there.

Since its opening on the 16th of last month, the center has handled over 200 consultations and issued more than 80 disaster confirmation certificates, providing the support services that merchants need.

Through this meeting, it was decided to expand the issuance of disaster confirmation certificates to SMEs so that merchants affected by the Itaewon incident can receive support even if they exceed the small business owner criteria.

The Ministry of SMEs and Startups held its own Disaster Countermeasure Deliberation Committee on the 27th of last month to finalize the improvement plan, and after a preparation period, it is scheduled to be implemented from the 6th. With the expansion of the support target to SMEs, the Korea SMEs and Startups Promotion Agency and the Korea Technology Finance Corporation will newly participate in the center.

Once a disaster SME confirmation certificate is issued, affected companies can receive loan support for the damage amount. This includes ▲KOSME’s emergency management stabilization funds (up to 1 billion KRW, fixed interest rate of 1.9% per annum) and maturity extension support ▲reduced guarantee fees and increased guarantee amounts under the Korea Technology Finance Corporation’s disaster special guarantee ▲reduced guarantee fees and increased guarantee ratios under the Regional Credit Guarantee Foundation’s disaster special guarantee.

Additionally, for small business owners who have received deferred disposition for tax arrears, the Small Enterprise and Market Service plans to provide direct loans. The Yongsan Tax Office will extend the national tax payment deadline and provide tax support by deferring forced collection in case of arrears.

Minister Lee stated, "We are discussing with related organizations how to plan and promote mid- to long-term tasks such as revitalizing the Itaewon commercial district and tourism, improving awareness, and campaigns," adding, "We will work together to prepare measures so that the Itaewon commercial district can make a leap forward as a Glocal commercial district."

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