Gangnam-gu to Provide Support Worth 207 Billion KRW for Livelihood Stability and Economic Revitalization

Loan Interest Support Project Worth 100 Billion KRW

Gangnam-gu, Seoul (District Mayor Jo Seong-myeong) announced on the 21st that it will utilize policy funds worth 207 billion KRW this year to stabilize the management of small and medium-sized enterprises (SMEs) and small business owners and revitalize the local economy.

Exterior view of Gangnam District Office. Provided by Gangnam District.

The district plans to restore the struggling livelihood economy caused by high inflation and reduced consumption through multifaceted support measures, including financial support worth 130 billion KRW, issuance and payback provision of Gangnam Sarang Gift Certificates worth 74 billion KRW, issuance of public delivery gift certificates worth 3 billion KRW, and customized specialized projects for local commercial districts.

Financial Support Worth 130 Billion KRW

The district will provide loans worth 30 billion KRW this year through the SME Development Fund. SMEs and small business owners who have been registered in Gangnam-gu for more than one year can receive loans at a fixed interest rate of 1.5%, with individuals eligible for up to 100 million KRW and corporations up to 300 million KRW.

Additionally, to alleviate the financial burden on SMEs and small business owners, a loan interest support project worth 100 billion KRW will be implemented. When obtaining new loans from contracted financial institutions, borrowers can receive support of 2?2.5% of the loan interest on amounts up to 300 million KRW, reducing financial costs.

The contracted financial institutions, which were mainly operated by Shinhan Bank and Woori Bank, have expanded from two banks to six since last year, with the addition of Yeongdong Nonghyup, Songpa Nonghyup, Saemaeul Geumgo, and Namseoul Credit Union. This expansion is expected to allow more SMEs and small business owners to receive tangible benefits.

Issuance of Local Love Gift Certificates to Stimulate Consumption and Revitalize Neighborhood Commercial Districts

The district will issue 74 billion KRW worth of ‘Gangnam Sarang Gift Certificates’ (including a 10% payback) and 3 billion KRW worth of ‘Gangnam Ttaenggyeoyo Gift Certificates’ to restore residents’ consumer sentiment.

The Gangnam Sarang Gift Certificates can be purchased at a 5% discount up to 500,000 KRW per person, and with the ongoing payback benefit, 5% of the amount used at affiliated stores is refunded in the same gift certificates, effectively providing a 10% discount.

The Gangnam Ttaenggyeoyo Gift Certificates, exclusive to the public delivery app, can be purchased at a 15% discount up to 200,000 KRW per person, allowing consumers to enjoy delivery food at a lower price. In addition to consumer discounts, the low 2% commission fee can help increase sales for small business owners. The district plans to issue additional certificates once the current stock is sold out.

Revitalizing traditional markets and neighborhood commercial districts is also a key task. The district will breathe new life into traditional markets such as Yeongdong Traditional Market and Dogok Market by supporting facility and management modernization, specialized projects, and Onnuri Gift Certificate paybacks, providing a pleasant and safe shopping environment. Furthermore, it plans to strengthen the organizational capacity and capabilities of neighborhood commercial districts, foster creative local brands, and support customized revitalization efforts to enhance the economic self-sufficiency of the region.

District Mayor Jo Seong-myeong stated, “In these challenging economic times, we hope that this large-scale financial support will serve as a spark to invigorate local commercial districts and the livelihood economy,” adding, “We will focus administrative capabilities on reducing the financial burden on SMEs and small business owners and restoring weakened consumer sentiment.”

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