KakaoBank and Seoul Credit Guarantee Foundation to Provide KRW 200 Billion in Loans to Small Business Owners

KakaoBank, in partnership with the Seoul Credit Guarantee Foundation, will launch the "Safe Account 2" program starting August 28. KakaoBank also participated independently in the "Safe Account 1" initiative, making it the only bank in the sector to consecutively introduce the "Safe Account" product twice.

The "Safe Account" is a revolving line of credit exclusively for small business owners, designed to alleviate funding shortages and improve financial accessibility. It is part of the Seoul Metropolitan Government's "Small Business Support Project." Business owners can borrow and repay funds as needed within the initially approved period and limit, providing significant support for those facing urgent liquidity needs.

Through this program, a total of KRW 200 billion in loans is expected to be supplied. In March, the "Safe Account 1" initiative provided KRW 200 billion in loans to 20,000 small business owners.

Eligible applicants are self-employed individuals who have operated a business in Seoul for at least one year, have a representative credit score of 600 or higher (based on NICE standards), and have either a total sales amount of at least KRW 2 million over the past three months or an annual reported sales amount of at least KRW 10 million. The maximum loan limit is KRW 10 million. However, some applicants may be excluded based on the Seoul Credit Guarantee Foundation and KakaoBank’s loan screening criteria, such as those who have received credit card cash advances from four or more institutions.

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For the "Safe Account 2" program, some eligibility requirements will be relaxed for vulnerable small business owners facing management difficulties. "Young entrepreneurs" aged 30 or younger will be eligible to apply after just six months of business operation, and "long-established business owners" aged 60 or older with more than 10 years of business history can apply even if they have received credit card cash advances from four or more institutions.

Applications will be accepted starting at 9 a.m. on August 28 through the Seoul Credit Guarantee Foundation’s mobile application. During the first week of the launch (August 28 to September 3), applications will be restricted based on the last digit of the applicant’s birth year. From September 4, anyone can apply regardless of birth year, and the program will close automatically once the KRW 200 billion fund is fully allocated. Those who sign up for the "Safe Account" product through KakaoBank will receive support for guarantee fees.

KakaoBank stated, "We are participating in this initiative to help reduce the financial burden and improve convenience for small business owners in the Seoul area," adding, "We will continue to provide a variety of financial support for individual business owners through innovative financial technology, contributing to the self-sufficiency of small businesses and the revitalization of the local economy."

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