Gangnam-gu Supports 100 Billion KRW Loan Interest for SMEs and Small Business Owners

From the 17th, Shinhan and Woori Bank's 31 branches will support new loans with an annual interest rate of 2~2.5%, and provide an additional 1% support for one year on a temporary basis

Gangnam-gu (District Mayor Jo Seongmyeong) will compensate interest at an annual rate of 2~2.5% on new loans starting from the 17th to support small and medium-sized enterprises and small business owners struggling due to economic recession caused by high interest rates, high inflation, and high exchange rates.

This project supports an interest rate of 2~2.5% per year on loan principal up to 300 million KRW per company, with the borrower responsible for the remaining interest. The total loan support amount is 100 billion KRW, with 50 billion KRW allocated for the first half of this year and 50 billion KRW for the second half.

For real estate collateral loans, support is provided at 2% per year, and for credit collateral loans, at 2.5% per year, for up to 5 years. Considering the severe economic recession this year, the district will additionally support 1% interest per year for one year from the loan execution date for new loans in 2023, effectively supporting 3~3.5% per year.

The support targets are small and medium-sized enterprises and small business owners located in Gangnam-gu who have maintained their business for more than one year after business registration, and who have received new loans after the 17th at 17 Shinhan Bank branches and 14 Woori Bank branches that have agreements with Gangnam-gu. Applications must be made by visiting the bank branches, and the application deadline is on a first-come, first-served basis until funds are exhausted. However, businesses restricted from SME development fund loan support, businesses restricted by Seoul Credit Guarantee Foundation guarantees, and those that have relocated their business outside Gangnam-gu are excluded from eligibility.

For more details, please refer to the Gangnam-gu website or contact the district office’s Regional Economy Division.

Jo Seongmyeong, Mayor of Gangnam-gu, said, “Following the 30 billion KRW loan support project started in February to assist small and medium-sized enterprises and small business owners suffering from high interest rates, we are now supporting loan interest. We hope this support will help stabilize the management and alleviate financial difficulties of local businesses.”

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