Jungnang-gu Partners with Banks to Provide 17.5 Billion Won Loan Support for Small Merchants and Businesses

Jungnang-gu Signs 'Special Credit Guarantee Loan Support' Agreement with Woori, Shinhan, Hana Banks and Seoul Credit Guarantee Foundation
Total Contribution of 1.4 Billion KRW to Support Special Guarantee Loans Worth 17.5 Billion KRW

Jungnang-gu (Mayor Ryu Kyung-gi) held a 'Special Credit Guarantee Loan Support Business Agreement Ceremony' on the 28th together with Woori Bank, Shinhan Bank, Hana Bank, and the Seoul Credit Guarantee Foundation.

This agreement was prepared to expand financial support to revitalize the local economy by resolving the financial difficulties of small business owners and small and medium-sized enterprises (SMEs) in the area who are struggling with high interest rates and high prices.

According to the agreement, Jungnang-gu and the three banks will contribute a total of 1.4 billion KRW to the Seoul Credit Guarantee Foundation, which will provide special guarantee loan support worth 17.5 billion KRW, 12.5 times the contribution amount. The contributions consist of 100 million KRW from Jungnang-gu, 1 billion KRW from Woori Bank, 200 million KRW from Hana Bank, and 100 million KRW from Shinhan Bank.

The special guarantee loan support targets micro and small enterprises and small business owners who have had a business place in Jungnang-gu and have been registered for more than three months, with support of up to 200 million KRW per company.

The loan conditions are an annual interest rate of 2-3% (variable interest rate, which may vary depending on the use of the existing foundation, etc.), with a one-year grace period followed by equal installment repayments over 3-4 years.

Business owners wishing to apply for the loan can submit their applications through the Seoul Credit Guarantee Foundation Jungnang branch. Afterward, credit investigation, business site visits, and guarantee screening will determine whether the guarantee is approved. Once approved, the loan will be executed through the bank, and the loan status will be transparently managed by sharing information regularly between the Seoul Credit Guarantee Foundation and Jungnang-gu.

Ryu Kyung-gi, Mayor of Jungnang-gu, said, "This special credit guarantee loan support agreement is an important step that provides practical help to local small business owners and SMEs," adding, "We will continue to strengthen cooperation among the public, private, and financial institutions to revive the local economy and actively promote support policies that all residents can feel."

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