Gwangjin-gu, Special Loan of 51.3 Billion KRW for Small Business Owners

Loans up to 70 million KRW per business for small enterprises and self-employed operating over 3 months locally
Applications open from March until funds are exhausted
Interest burden reduced with around 1.8% variable rate during 2-year grace period

Gwangjin-gu (Mayor Kim Kyung-ho) is implementing the ‘Gwangjin-type Special Loan’ worth 51.3 billion KRW. Amid the economic downturn, it is expected to provide some relief to small businesses and small merchants struggling with cash flow.

The ‘Gwangjin-type Special Loan’ is a project that supports loans at lower interest rates than commercial bank loans by offering special guarantee benefits and interest support to small merchants lacking collateral. Last year, 857 small merchant businesses benefited from loans totaling approximately 31.2 billion KRW.

The district signed a business agreement with the Seoul Credit Guarantee Foundation, KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank. Together with these partner banks, 2.4 billion KRW was contributed to the Seoul Credit Guarantee Foundation to secure 51.3 billion KRW in guarantee funds, enabling more small merchants to receive support.

The ‘Gwangjin-type Special Loan’ allows loans up to 70 million KRW, with a 2-year grace period followed by 3 years of equal installment repayments. For the first two years, the district covers 2% of the interest, allowing users to effectively borrow at a variable interest rate of around 1.8% per annum.

Eligible applicants are small businesses and small merchants who have been registered and operating in Gwangjin-gu for more than three months. However, businesses that ▲ are currently repaying loans supported by the Gwangjin-gu Small and Medium Enterprise Development Fund ▲ have a guarantee history with the Seoul Credit Guarantee Foundation within the past year ▲ belong to industries excluded from policy fund support such as finance, insurance, entertainment bars, and gambling facilities are not eligible.

Businesses wishing to apply for the loan must first schedule a visit appointment through the Seoul Credit Guarantee Foundation’s website, mobile app, or customer center. After preparing the required documents, applicants should visit the Seoul Credit Guarantee Foundation’s Gwangjin branch for consultation. More detailed information can be found on the Gwangjin-gu Office website and the Seoul Credit Guarantee Foundation website.

Kim Kyung-ho, Mayor of Gwangjin-gu, said, “We deeply appreciate the Seoul Credit Guarantee Foundation and partner banks for joining forces in these difficult times. We expect the Gwangjin-type Special Loan to be of great help to small merchants struggling with high-interest rates,” adding, “We will continue to strive to implement practical policies that local entrepreneurs can feel, alongside economic revitalization.”

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