Songpa-gu, 20 Billion KRW Unsecured Special Credit Guarantee for Small Business Owners

Up to 50 million KRW per company possible

View of Songpa District Office. Provided by Songpa District Office.

Songpa-gu, Seoul (Mayor Seo Gang-seok) announced on the 26th that it will provide an unsecured special credit guarantee worth 20 billion KRW to alleviate financial difficulties for small business owners. The district explained, "With about 43,000 small enterprises and small business owners in the area, the third highest number among Seoul's autonomous districts, there is a high demand for credit guarantees, which led to the establishment of this special guarantee."

Over the past two years since COVID-19, the amount guaranteed by Songpa-gu's special credit guarantee increased significantly from 15.6 billion KRW to 19.8 billion KRW, and the number of supported businesses rose from 517 to 623. The district contributed 100 million KRW to this special credit guarantee, as direct guarantee fund contributions expand the scale of cooperative bank funds, allowing more businesses to benefit. Together with Woori Bank, Hana Bank, and Shinhan Bank, a total guarantee fund of 1.6 billion KRW was prepared, supporting a total of 20 billion KRW through the Seoul Credit Guarantee Foundation.

The support targets are small enterprises and small business owners who have registered their business in Songpa-gu for more than six months. By paying an annual guarantee fee of 0.8%, up to 100% of the loan amount is guaranteed. Applications started on the 14th and will be accepted until funds are exhausted. Applicants can visit designated branches of the partner banks (Woori, Hana, Shinhan Bank) to apply, and after review by the Seoul Credit Guarantee Foundation Songpa branch, supported businesses will be selected. Each business can receive loans up to 50 million KRW with an interest rate around 3.5% per annum.

For detailed information such as required documents, please check the ‘Notices and Announcements’ section on the Songpa-gu Office website.

Mayor Seo Gang-seok said, “Through this unsecured special credit guarantee, we aim to provide practical help to small enterprises and small business owners in the district who lack collateral.” He added, “We will implement various support measures so that small business owners, the backbone of the local economy, can overcome difficult times and regain vitality.”

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