Seongdong-gu Provides 7 Billion KRW Loan Support from 1.5% Interest Rate Small Business Development Fund

Loan applications totaling 7 billion KRW accepted until the 13th of this month, with 1.5% interest rate and 1-year grace period followed by 3-year equal installment repayment
Total 7 billion KRW including 4 billion KRW Small Business Development Fund and 3 billion KRW Bank Cooperation Fund
Support for e-commerce affected companies like TMON, WEMAKEPRICE, and local SMEs and small business owners

Seongdong-gu, Seoul (District Mayor Jeong Won-oh) recently announced a second half-year loan support program totaling 7 billion KRW, combining 4 billion KRW from the Small and Medium Business Development Fund and 3 billion KRW in bank cooperation funds, to assist local small and medium-sized enterprises (SMEs) and small business owners facing management difficulties due to the economic downturn related to e-commerce damages from platforms such as TMON and WEMAKEPRICE.

The application period is from the 2nd to the 13th of this month. For district funds, the interest rate is 1.5%, with a loan period of 4 years (1 year grace period followed by 3 years of equal installment repayments). For the bank cooperation funds, the district supports an annual interest rate of 1%.

The support targets are SMEs or small business owners who, as of the application date, have their main office or factory located in Seongdong-gu and have been registered as a business for more than 6 months.

SMEs can receive up to 200 million KRW, while small business owners can receive up to 50 million KRW. However, businesses that are temporarily closed or permanently shut down, those with bad credit, those prohibited from guarantees, and restricted industries are not eligible to apply.

Companies wishing to apply for loans should bring required documents such as the loan application form, business plan, and business registration certificate, visit Shinhan, KEB Hana, Woori, or IBK banks for preliminary consultation, and then apply in person at the Seongdong-gu Office Regional Economy Division. Further details can be found in the notices section on the district’s official website.

Jeong Won-oh, Mayor of Seongdong-gu, stated, "With the ongoing complex crisis of economic downturn and high interest rates, local companies are facing difficulties. We hope that the Small and Medium Business Development Fund loan support project will serve as a practical measure to protect local businesses and help stabilize their management."

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