Yongsan-gu Provides 4 Billion KRW Loan Support from SME Development Fund Before Chuseok

Loan up to 300 million KRW for SMEs, up to 100 million KRW for Small Businesses... Applications Accepted Until September 8

Yongsan-gu (District Mayor Park Hee-young) will provide loans from the Small and Medium Business Development Fund worth 4 billion KRW to support local small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties ahead of Chuseok.

From the 28th of this month until the 8th of next month, applications can be submitted at the Woori Bank Yongsan-gu Office branch with the required documents, including the loan application form, business plan, and documents requested by the bank and foundation. However, if collateral is provided through a credit guarantee, prior consultation at the Seoul Credit Guarantee Foundation Yongsan branch is mandatory. A “One-Stop Service Desk for Small and Medium Business Development Fund” will also be set up on-site to facilitate smooth application processing.

The total loan amount for this year is 8 billion KRW, with 3.98 billion KRW supported in the first half and 4.02 billion KRW planned for the second half. Applications can be made for up to 300 million KRW for SMEs and up to 100 million KRW for small business owners.

The loan interest rate is 1.5% per annum, but a special low rate of 0.8% will be applied temporarily in 2023. The loan funds must be used for business operations, technology development, or facility expenses, with a repayment plan of a 2-year grace period followed by equal installments over 3 years.

Eligible applicants are SMEs and small business owners operating businesses within the district. However, businesses in excluded industries such as general entertainment bars and dance entertainment bars, finance, insurance, pensions, real estate (excluding real estate-related services), gambling, luxury, pleasure, and speculative industries, as well as companies with other loan records established in Yongsan-gu within the past 5 years, are not eligible.

Priority for loan recipients is as follows: (1st priority) new applicants for the Small and Medium Business Development Fund, (2nd priority) companies that have borrowed at least once more than 3 years ago and have completed repayment, and (3rd priority) companies currently repaying loans. Female entrepreneurs will be given priority support within 10% of the total loan amount.

This loan will be finalized after document review and on-site inspection of applicants, followed by deliberation by the Fund Management Committee. Loan disbursement will begin on the 19th of this month, with support completed before Chuseok.

Park Hee-young, Mayor of Yongsan-gu, said, “The Small and Medium Business Development Fund loans offer lower interest rates than general banks, but this year, a special low rate of 0.8% will be applied temporarily. We hope this will provide tangible support to SMEs and small business owners struggling with economic downturn and rising interest rates.”

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