Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
Jung District to offer $28 mil. in credit guarantees, loans for small businesses
Jung District Office building in central Seoul / Courtesy of Seoul Jung District Office
By Jhoo Dong-chan
Seoul’s Jung District is providing financial support to small businesses and microbusiness owners facing economic uncertainties driven by domestic and global factors, including instability in the Middle East.
Starting this month, the district office will offer 37 billion won ($28 million) in financial support to small business owners. The package includes 35 billion won in special credit guarantees that require no collateral, plus an additional 2 billion won in low-interest development loans available through June.
The district has accelerated the rollout of the special guarantees by about two months compared to last year. On April 6, it signed an agreement with five commercial banks — Woori Bank, Hana Bank, KB Kookmin Bank, Shinhan Bank and NH NongHyup Bank — as well as the Seoul Credit Guarantee Foundation to expand support for local businesses.
Under the agreement, the district and participating banks contributed a combined 2.8 billion won to the foundation. Based on this contribution, the foundation will provide guarantees worth approximately 35 billion won, equivalent to 12.5 times the contributed amount. The total guarantee marks an increase of 7.5 billion won from the previous year.
Eligible applicants include small business and microbusiness owners registered in the district. Guarantee limits will vary depending on applicants’ credit ratings. Loan interest rates are expected to be around 2.6 percent annually, with a repayment structure of a one-year grace period followed by four years of equal installments.
To improve accessibility, the district has established a dedicated application desk on the first floor of the district office and introduced an online application system — the first among Seoul’s district offices. Applicants can also receive a consultation through the Seoul Credit Guarantee Foundation’s mobile app and submit documents via the district’s artificial intelligence-based platform.
Separately, Jung District will provide 2 billion won in loans through its small business development fund. Applicants must have operated their businesses in the district for at least six months.
Loan limits are set at up to half of the previous year’s sales, capped at 50 million won for general businesses and 100 million won for manufacturers. The loans carry a fixed annual interest rate of 1.5 percent and must be repaid over five years.
Applications for the fund loans must be submitted in person by April 22, with final recipients to be selected by a committee late this month.
This article was published with the assistance of generative AI and edited by The Korea Times.