Yongsan-gu Provides Low-Interest Loans Worth 6 Billion KRW to Small and Medium-Sized Businesses

Annual 1.5% SME Development Fund Loan Support
Loan Applications Available Up to 300 Million KRW for SMEs and 100 Million KRW for Small Business Owners

Yongsan-gu, Seoul (District Mayor Park Hee-young) will provide loans totaling 6 billion KRW, funded by the Small and Medium Business Development Fund, to support small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling due to interest rate hikes and rising prices.

SMEs can apply for loans up to 300 million KRW, and small business owners can apply for up to 100 million KRW for purposes such as business operations, technology development, and facility funds.

Selected borrowers will receive loans at an annual interest rate of 1.5%, which is lower than market rates, with a repayment plan of 2 years grace period followed by 3 years of equal installment payments.

The support targets are SMEs and small business owners with business locations in the district. Priority will be given to women-owned businesses and new loan applicants. Additionally, the district plans to provide practical assistance by dividing the total 6 billion KRW into two installments of 3 billion KRW each for the first and second half of the year to help businesses facing financial difficulties at different times. However, businesses such as general and dance entertainment bars, financial, insurance, pension, and real estate industries (excluding real estate-related services), gambling, luxury, entertainment, and speculative businesses, as well as those with other loan records in Yongsan-gu within the last five years, are excluded from eligibility.

Applications can be submitted in person at the Woori Bank Yongsan-gu Office branch from the 11th to the 22nd of the month, bringing the loan application form, business plan, and other required documents. However, if collateral is provided through a credit guarantee certificate, prior consultation at the Seoul Credit Guarantee Foundation Yongsan branch is required.

This first half-year loan will begin in May after document screening, on-site inspection, and review by the Fund Management Committee to finalize the support recipients.

Park Hee-young, Mayor of Yongsan-gu, said, “From listening to voices on the ground, securing funds has been one of the biggest challenges for SMEs and small business owners. We hope this low-interest loan will provide tangible help to those facing difficult business environments.”

Meanwhile, since its establishment in 1993, the Yongsan-gu Small and Medium Business Development Fund has supported 1,430 companies with 89.6 billion KRW, continuously contributing to the growth and development of SMEs and small business owners.

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