Dongjak District Drives Sales Recovery with “Special Interest-Free Guarantee Loan Program for Small Business Owners”

100 Billion Won Funded, the Largest Among Districts
A Catalyst for Economic Recovery in Local Livelihoods

Dongjak District in Seoul (Mayor Park Ilha) announced on August 28 that its “Special Interest-Free Guarantee Loan Program for Small Business Owners,” which is being implemented with a fund of 100 billion won-the largest amount among district-level governments-is now delivering tangible results.

Park Ilha, mayor of Dongjak District Office, is delivering a greeting at the "Sungshin University Commercial District Revitalization Meeting" last February. Provided by Dongjak District Office.

Since 2023, the district has been operating this 100 billion won program, providing up to 70 million won per business. The repayment terms require a one-year grace period, followed by equal principal installments over four years. During the initial year, the district offers interest-free benefits to ease the financial burden on small business owners.

According to the district, a total of 1,970 businesses received approximately 82.5 billion won in loans from the program through August of this year. The average annual sales of beneficiary businesses last year reached 269.18 million won, surpassing the district-wide average of about 258.12 million won, indicating a clear recovery in sales.

In particular, to improve accessibility for small business owners, the district operated a “visiting one-stop service” from May to July. By setting up on-site application counters at 15 local community centers, the total loan amount for this year reached 23.1 billion won as of August, a 47% increase compared to the same period last year. On-site, the district also provided information on various support policies for small business owners, such as “Good Price Stores” and the “Yellow Umbrella Mutual Aid Fund,” which was well received.

Going forward, the district plans to publish the tentatively named “Dongjak District Economic Magazine” to provide practical information for small business owners. Additionally, it will create a “Local Economic Map” that analyzes the relationship between the policies of the 8th popularly elected administration and commercial district indicators, and use this for policy promotion.

Mayor Park Ilha stated, “The interest-free special guarantee loan program is a strong pillar supporting the recovery of sales and strengthening the competitiveness of small business owners,” adding, “We will continue to provide practical support that can be felt in the local economy.”

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