Seoul’s Guro District announced on the 7th that it will implement a total of 3.8 billion KRW in financial support starting in the second half of the year to alleviate the financial difficulties and stabilize the management of small and medium-sized enterprises (SMEs) and small business owners in the region.
The support targets SMEs and small business owners with business sites located in Guro District. The financial package comprises direct loans worth 981 million KRW, subsidized interest for cooperative funds with commercial banks amounting to 2.1 billion KRW, and a special guarantee for small business owners at 800 million KRW.
Direct loans offer up to 200 million KRW for SMEs and up to 50 million KRW for small business owners at an annual interest rate of 1.5%, with repayment terms of a one-year grace period followed by four-year equal installments. The support size for the second half includes 981 million KRW, excluding the amount allocated for the first half. Applications can be submitted at the Seoul Credit Guarantee Foundation Guro branch and Shinhan Bank Guro District Office branch from July 16 to 31.
The subsidized interest support covers the interest difference of up to 3% of the loan, and applications are accepted during the first five days of every month at Shinhan Bank Guro District Office branch and corporate bank branches within Guro District.
The special guarantee for small business owners aids those with insufficient collateral with an 800 million KRW credit guarantee.
Mayor Jang In-hong of Guro District expressed, “I hope this financial support will substantially assist the stability of management for local SMEs and small business owners. We will continue to pursue various financial support policies in the future.”