High-Interest Era... Seocho-gu Offers Lowest Interest Rates and Largest Scale Support

Jeon Seong-su, Seocho District Mayor

Seocho-gu Launches Customized Loan Support for Small and Medium-Sized Businesses Facing Financial Difficulties... Aiming for Business Stability and Regional Economic Revitalization

Small and Medium Enterprise Development Fund Loan Support... Seoul Autonomous District’s Lowest Interest Rate at 0.1% per Year, 6 Billion KRW Loan (Up to 100 Million KRW per Business)

Additional 20 Billion KRW Loans Operated in Cooperation with Commercial Banks... Up to 200 Million KRW per Business with 3% Interest Support

Seocho-gu is becoming a reliable support system for local small and medium-sized businesses struggling with financial difficulties due to high inflation and high interest rates. The district offers the lowest interest rates among Seoul’s autonomous districts and expands loan amounts to promote business stability and regional economic revitalization.

Seocho-gu (Mayor Jeon Seong-su) is implementing the ‘Seocho Loan Support Triple Package’ project for small and medium-sized businesses in the area.

The loan support project provides tailored assistance through ▲‘Small and Medium Enterprise Development Fund Loan Support’ offering the lowest interest rates in Seoul ▲‘Commercial Bank Cooperative Fund Loan Interest Support’ providing up to 200 million KRW per business ▲‘Small Business Ultra-Speed Loan’.

First, the district will accept applications on a first-come, first-served basis starting from the 13th for the ‘Small and Medium Enterprise Development Fund Loan Support’ with an annual interest rate of 0.1%. The support scale has increased from 4 billion KRW last year to 6 billion KRW, with a maximum of 100 million KRW per business. The loan period is 5 years, with options for either a 1-year grace period followed by 4 years of equal installments or a 2-year grace period followed by 3 years of equal installments.

Eligible applicants are small and medium-sized enterprises or registered manufacturing companies with their main office in Seocho-gu. Businesses that are temporarily closed or permanently shut down, those with overdue local taxes or fines, and those in entertainment or luxury industries are excluded.

The loan purpose includes corporate facility funds, operating funds, and technology development funds. Borrowing companies must submit a loan usage confirmation form and supporting documents to the district office within 3 months to verify appropriate use of the loan. Applications can be made at three Shinhan Bank branches (Seocho-gu Office Branch, Yangjae Station Financial Center, Yangjae-dong Branch).

Additionally, the district operates a ‘Commercial Bank Cooperative Fund Loan Interest Support Project’ with a scale of 20 billion KRW. Since 2020, it has been running in partnership with Shinhan Bank and Woori Bank. By increasing the interest subsidy rate from 2% last year to 3% this year, the burden on small business owners has been reduced. The loan amount is up to 200 million KRW per business, with a 4-year term including a 1-year grace period and 3 years of equal installments. Applications can be made by visiting any Shinhan Bank branch in the area or Woori Bank’s Yangjae Station branch.

Both the ‘Small and Medium Enterprise Development Fund Loan Support’ and the ‘Commercial Bank Cooperative Fund Loan Interest Support’ require collateral for application. Applications open from the 13th, and detailed information is available on the Seocho-gu Office website.

Moreover, since February, the district has been operating the ‘Small Business Ultra-Speed Loan’ for small businesses lacking sufficient collateral, which started last month.

The support scale is the largest among Seoul’s autonomous districts at 74 billion KRW, with the loan limit per business increased from 50 million KRW last year to up to 70 million KRW. Support is provided regardless of credit rating, and a one-stop process from application to loan is available at designated banks. The loan interest rate is applied by combining the 3-month variable rate of transferable certificates of deposit and an additional 1.7%. Of this, the district subsidizes up to 2.75%.

Jeon Seong-su, Mayor of Seocho-gu, said, “Through the district’s various loan programs, we hope local businesses can overcome the high-interest crisis, achieve business stability, and lead to the revitalization of the regional economy.”

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