Seoul City and Seoul Credit Guarantee Foundation Provide Startup Funds, Loans, and Management Consulting Package to Small Business Owners Retaking Challenges

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[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation announced on the 5th that they will provide essential services as a ‘package’ to diligent small business owners who are making a fresh start after past failures, including one-on-one expert management consulting, 2 million KRW in initial business funds, low-interest loan support, and up to 1 million KRW in guarantee fee support.

The Seoul Metropolitan Government and the Foundation are implementing the comprehensive re-challenge support package covering both financial and non-financial aspects called the ‘Seoul-style Restart 4.0 Project.’ It fully supports the re-advancement of re-startup small business owners and so-called ‘Sincere Failures’ who have diligently repaid debts in the past but have not yet completed full repayment. ‘Sincere Failures’ refers to small business owners who have overcome past credit issues through credit recovery, (personal) rehabilitation, or bankruptcy discharge, or who have not fully repaid debts to the Foundation due to business failure but have no moral issues such as asset concealment.

The Seoul-style Restart 4.0 Project is a major upgrade from last year’s Seoul-style Restart 3.0 Project. It adds initial re-challenge funds and guarantee fee support, which were not available in 3.0, and expands financial support such as interest subsidies. The number of beneficiaries is also increased fivefold from 100 per year to 500 this year (300 in the first half, 200 in the second half).

The Foundation will publicly recruit 300 beneficiaries for the first half from the 6th to the 26th. The target is ‘Sincere Failures’ operating businesses in Seoul, and 300 will be finally selected after a comprehensive evaluation of applicants’ will to restart and business plans.

The finally selected small business owners will receive ▲ one-on-one customized education and management consulting ▲ up to 2 million KRW in initial funds free of charge ▲ interest subsidy of 1.8~2.3% and up to 1 million KRW in guarantee fee support ▲ and post-management services.

Joo Cheol-soo, Chairman of the Seoul Credit Guarantee Foundation, said, “As difficulties for self-employed people continue due to the prolonged COVID-19 pandemic, we will do our best to provide small business owners who have experienced failure with opportunities to make a fresh start and to dream of success once again through the Seoul-style Restart 4.0 Project.”

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