Dongjak-gu Provides 3 Billion KRW Loan Support at 1.5% Annual Interest for SMEs and Small Business Owners

Providing 1.5% Fixed Interest Rate Benefits Annually to Local Businesses Facing Management Difficulties

Dongjak-gu (Mayor Park Il-ha) is launching a total of 3 billion KRW in 'Small and Medium Enterprise Development Fund Loans' to support small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling due to economic downturns caused by high inflation and high interest rates.

First, the district will accept applications for the '1st Small and Medium Enterprise Development Fund Loan Support' worth 2 billion KRW until the 20th of this month.

The support targets SMEs and small business owners who have had a business location in Dongjak-gu and have been operating for more than six months. Financial and insurance industries, luxury and entertainment businesses, and restaurants with five or more employees are excluded.

The loan support amount is up to 200 million KRW per company for manufacturing and construction industries, and up to 50 million KRW for small business owners in other sectors such as wholesale and retail.

The loan funds can be used for rent, facility improvements, labor costs, etc., and repayment terms can be chosen within five years at a fixed annual interest rate of 1.5%.

Applications can be submitted by visiting the Economic Policy Division (9th floor, Yuhan Yanghaeng) with the required documents, including ▲loan application form and ▲business plan, after prior consultation at the Kookmin Bank Dongjak-gu Office branch or the Seoul Credit Guarantee Foundation Dongjak branch.

Submission documents and forms can be checked on the district’s website under Notices and Announcements, and other inquiries can be directed to the Dongjak-gu Economic Policy Division.

Approval will be decided through deliberation by the Dongjak-gu Small and Medium Enterprise Development Fund Management Committee.

Additionally, a '2nd Small and Medium Enterprise Development Fund Loan Support' worth 1 billion KRW is planned to be implemented in July.

Along with this, the district plans to establish a loan fund of 25 billion KRW for 'special guarantees and interest support' in cooperation with the Seoul Credit Guarantee Foundation and banks.

For the first year after the loan, companies can receive interest-free loans up to 70 million KRW per company, with the district covering all loan interest.

Park Il-ha, Mayor of Dongjak-gu, said, “I hope this loan support will help alleviate the financial difficulties of local SMEs and small business owners facing management challenges. We will continue to implement various support projects to revitalize the local economy.”

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