Yeongdeungpo-gu Provides 22.5 Billion KRW Special Credit Guarantee Support to Boost Local Economy

On the 14th, Seoul Credit Guarantee Foundation and Shinhan, Kookmin, Hana Banks Signed a Business Agreement
Loans Available at Around 3% Interest for Small Business Owners and SMEs in Yeongdeungpo-gu
Special Contributions in Cooperation with Financial Institutions in the First and Second Half, Providing Guarantee Support Worth a Total of 22.5 Billion KRW

Yeongdeungpo-gu (District Mayor Choi Ho-kwon) announced plans to provide a total of 22.5 billion KRW in special credit guarantees to help alleviate financial difficulties faced by local small business owners and small and medium-sized enterprises (SMEs).

On the 14th, the district will sign a business agreement with the Seoul Credit Guarantee Foundation and three financial institutions (Shinhan Bank, Kookmin Bank, Hana Bank) to contribute guarantee funds and support special guarantees aimed at stabilizing the management of local small business owners and SMEs and revitalizing the regional economy.

Under this agreement, the district will collaborate with the three banks to make a special contribution of 800 million KRW (300 million KRW from the district, 300 million KRW from Shinhan Bank, and 100 million KRW each from Kookmin Bank and Hana Bank) to the Seoul Credit Guarantee Foundation. The foundation will then provide special credit guarantees worth 10 billion KRW, which is 12.5 times the contributed amount, to local small business owners and SMEs lacking sufficient collateral.

The eligible recipients are small business owners and SMEs located in Yeongdeungpo-gu who lack sufficient collateral. Those who are delinquent or engaged in luxury, entertainment, or nightlife industries are excluded.

When eligible businesses apply for special credit guarantees at the guarantee foundation, the foundation will issue guarantee certificates after screening. Businesses can then use the issued certificates to obtain loans from Shinhan, Kookmin, or Hana Bank.

With this special guarantee support, small business owners and others will be able to secure funds at an interest rate of 3.58~3.78% (variable rate).

Repayment periods can be chosen from the following options: ▲ 1-year grace period followed by 2, 3, or 4 years of equal installment repayments ▲ 2-year grace period followed by 3 years of equal installment repayments ▲ lump-sum repayment at 2-year maturity. However, the guarantee limit per business may vary depending on the business’s credit rating and sales. For detailed information, inquiries can be made to the Yeongdeungpo branch of the Seoul Credit Guarantee Foundation.

Additionally, in the second half of this year, Woori Bank, the district’s treasury bank, plans to make a special contribution of 1 billion KRW to the Credit Guarantee Foundation. The district intends to further support special credit guarantees totaling 12.5 billion KRW to accelerate regional economic revitalization.

Choi Ho-kwon, Mayor of Yeongdeungpo-gu, stated, “Small business owners and SMEs are currently facing management difficulties due to high inflation and high interest rates. We hope this business agreement will serve as a help to business owners, and we will seek and implement practical support measures to alleviate their management difficulties.”

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