Yangcheon-gu signed a special credit guarantee contribution agreement Monday with the Seoul Credit Guarantee Foundation and representatives from major commercial banks at the district office.
The district also signed a separate big data utilization MOU with the Seoul Credit Guarantee Foundation, strengthening cooperation on financial support for small business owners and data-driven policy development.
The special credit guarantee program allows small business owners and small and medium-sized enterprises in the district that lack collateral or have low credit ratings to secure bank loans through credit guarantee certificates issued by the Seoul Credit Guarantee Foundation.
Total contributions to the program amount to 2.4 billion won ($1.64 million), with Yangcheon-gu contributing 100 million won, Woori Bank 1 billion won, KB Kookmin Bank 500 million won, Saemaul Geumgo 400 million won, Kakao Bank 200 million won, and Shinhan Bank and Hana Bank 100 million won each. The pooled funds will back 30 billion won in special credit guarantees for local businesses, enabling access to low-interest loans.
Eligible applicants are small business owners and small and medium-sized enterprises with a registered place of business in Yangcheon-gu, with support of up to 200 million won per business. Applications can be submitted through the Seoul Credit Guarantee Foundation's mobile app or in person at the foundation's Yangcheon General Support Center following a phone consultation reservation.
The big data utilization MOU aims to leverage data held by the Seoul Credit Guarantee Foundation to analyze financial conditions and commercial district trends in Yangcheon-gu, helping identify effective support policies tailored to the local economy.
Through the agreement, the district plans to more systematically analyze changes in commercial districts by sector and area, as well as financial usage patterns, and develop data-driven, customized support policies for small businesses to invigorate the local economy.
"I hope this special credit guarantee program will serve as a lifeline for small business owners and small and medium-sized enterprises struggling with the economic slowdown and high interest rates," district mayor Lee Gi-jae said. "We will continue to pursue effective policies combining financial support and big data to breathe new vitality into the local economy."
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