The "Safe Account" Program for Self-Employed Attracting 40,000 Applicants... Seoul City to Supply 200 Billion Won in the First Half of the Year

First Nationwide Overdraft Account for the Self-Employed, More Partner Banks Added
Easy Non-Face-to-Face Applications, Approval Within One Business Day
Flexible Deposits and Withdrawals, Up to 10 Million Won Limit

Seoul City will introduce a total of 200 billion won in "Safe Overdraft Accounts" in the first half of this year. The program, designed exclusively for self-employed individuals as an overdraft account, has improved loan terms by expanding partner banks and offering preferential conditions for young entrepreneurs.

According to Seoul City on March 9, the city will provide financial support amounting to 200 billion won to 20,000 self-employed individuals in the first half of the year. This is part of the 2026 Safe Overdraft Account supply plan (totaling 500 billion won), announced on February 9 as part of the "Boosting the Vitality of the People's Economy" initiative.

Seoul city will provide funds worth 200 billion won to 20,000 self-employed workers in the first half of this year. Photo by Yonhap News Agency in the area of Cheongnyangni Market, Dongdaemun-gu.

The "Safe Overdraft Account" is an overdraft account product exclusively for self-employed individuals, first introduced nationwide by Seoul City in 2025, to prevent those who have difficulty accessing institutional financing from being driven into illegal private lending. In its first year, through the first and second rounds of the program, the support limits were exhausted in an average of 47 business days, providing emergency operating funds totaling 400 billion won to around 40,000 self-employed individuals, receiving a strong response.

This year, the number of partner banks has been increased from four to six (Shinhan Bank, Woori Bank, KakaoBank, K Bank, Toss Bank, and Hana Bank), expanding options for small business owners. In addition, the criteria have been relaxed to provide preferential support for young entrepreneurs aged 39 or under with at least three years of business experience, allowing them to receive support from the Safe Overdraft Account even if they have used multiple second-tier financial products such as card loans or cash advances.

To prevent excessive traffic to the Seoul Credit Guarantee Foundation mobile app, applications during the first week will be processed using a five-day rotation system based on the last digit of the applicant's birth year. From March 26, anyone can apply regardless of birth year.

The loan interest rate is set at an annual rate of 4.80% (CD rate + 2.0%), which is lower than the average card loan interest rate at commercial banks of 14.0%. In addition, an automated non-face-to-face screening process has been introduced through the mobile app, allowing loan approvals to be completed within one business day without complicated document submissions or in-person procedures.

Eligible applicants are sole proprietors who operate small and medium-sized enterprises or small businesses with their business location in Seoul and meet all the following criteria: more than one year of business history; total sales of at least 2 million won over the past three months or reported annual sales of at least 10 million won; and a minimum NICE personal credit score of 600. For credit guarantee screening by the Seoul Credit Guarantee Foundation, support is restricted if, as of the application date, the applicant has received cash advances from four or more institutions or the total amount received exceeds 10 million won; has taken out loans from three or more institutions established under the Specialized Credit Finance Business Act or the Mutual Savings Banks Act within the past three months; or if the sum of the existing guarantee balance with the Seoul Credit Guarantee Foundation and the Safe Overdraft Account support amount exceeds 100 million won.

Seoul City recommended preparing business and residential lease contracts in advance to enable smooth applications. In addition, to replace on-site inspections, the applicant must take photos of both the exterior and interior of the business premises during the application process and verify the GPS location information. Therefore, applications must be submitted via the mobile app from the business address.

Lee Haeseon, Director of the Citizens’ Livelihood and Labor Bureau of Seoul City, stated, "Given that the real economy on the ground remains challenging, we plan to expand the highly popular Safe Overdraft Account program to a total of 500 billion won this year." He added, "We will continue to implement practical financial support policies to actively help small business owners in Seoul overcome their current crisis."

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