Dongdaemun-gu Provides 20 Billion Won Interest-Free Loans for One Year to Small Business Owners

Published 11 May.2021 16:16(KST)

Up to 20 million KRW per company with 1-year interest-free... Applications accepted until 20 billion KRW is exhausted

Dongdaemun-gu Provides 20 Billion Won Interest-Free Loans for One Year to Small Business Owners

[Asia Economy Reporter Jongil Park] Dongdaemun-gu (Mayor You Deok-yeol) has signed an agreement with the Dongdaemun branch of the Seoul Credit Guarantee Foundation, Woori, Hana, and Shinhan Banks to provide emergency business stabilization funds to small businesses and small merchants in the area struggling due to the prolonged COVID-19 pandemic, offering interest-free loans (for 1 year) up to 20 million KRW per business.

To implement this loan, Dongdaemun-gu and Woori, Hana, and Shinhan Banks have separately prepared a total of 1.6 billion KRW (800 million KRW each from Dongdaemun-gu and the three banks) to contribute to the Seoul Credit Guarantee Foundation.

The target recipients are small businesses and small merchants with a business address in Dongdaemun-gu and at least 6 months of business operation. Loans will be provided up to 20 million KRW per business, with an annual credit guarantee fee of 0.5%, a 1-year grace period, and 4 years of equal installment repayments.

The district will support the interest for one year from the loan date, after which the loan will operate at a 1-year variable interest rate of approximately 2.6%.

Applications can be submitted at the following branches: Woori Bank Dongdaemun-gu Office Branch, Cheongnyangni Central Financial Center, Hankuk University of Foreign Studies Branch, Kyunghee University Branch, Janghanpyeong Financial Center, Dapsimni Branch, Jangan-dong Branch, Jeonnong-dong Branch; Shinhan Bank Jegidong Station Branch, Dapsimni Branch, Jangan-dong Branch, Janghanpyeong Station Financial Center; Hana Bank Cheongnyangni Station Branch, Dapsimni Station Branch, Hwikyung-dong Branch.

Small businesses and small merchants wishing to apply should visit Woori Bank, Shinhan Bank, or Hana Bank branches and submit the following documents: credit guarantee application form, copy of business registration certificate, resident registration certificate, resident registration abstract, copy of lease contract for business and residence, national tax payment certificate, local tax payment certificate, income amount certificate, value-added tax standard certificate (for the last 3 years), (if applicable) 4 major social insurance subscriber list (if there are regular employees), (if applicable) financial transaction confirmation (if there are loans exceeding 10 million KRW or household checking account usage), (if applicable) for corporations: corporate registration certificate, corporate seal certificate, shareholder list, articles of incorporation copy, (if applicable) for transportation businesses: vehicle registration or construction machinery registration, etc.

The loan scale varies by bank, and the program will continue until the total 20 billion KRW is exhausted.

For more details, please check the ‘District News’ section on the Dongdaemun-gu Office website.

For other inquiries, contact the application offices or the Dongdaemun-gu Office Small Business Support Team.

Mayor You Deok-yeol of Dongdaemun-gu stated, “This project was initiated to provide a small support to small merchants who are experiencing incomparable difficulties due to the ongoing COVID-19 pandemic,” and added, “We will continue to provide multifaceted support so that small merchants do not lose hope and can sustain their businesses.”