Seoul's Dongdaemun-gu will launch a 3 billion won ($2.05 million) low-interest loan program for local small and medium-sized enterprises and small business owners on Wednesday, district mayor Choi Dong-min announced.
The program is designed to ease the financial burden on businesses in the district struggling with a prolonged domestic economic slowdown and persistently high interest rates.
The initiative aims to provide a practical financial safety net for small business owners facing a double squeeze from rising fixed costs — including rent and labor — and falling sales, helping stabilize their operations.
Businesses registered in Dongdaemun-gu for at least six months from the date of their business registration are eligible to apply. Small and medium-sized enterprises may borrow up to 100 million won, while small business owners may borrow up to 50 million won, both at a fixed annual rate of 1.5% — well below prevailing market rates. Loans are repaid in equal installments over four years after a one-year grace period, a structure intended to minimize early repayment pressure and help cash-strapped small businesses manage their finances.
Businesses wishing to apply may visit the Dongdaemun-gu Small Business Support Center (3rd floor, 6 Jeonnong-ro 36-gil) starting Wednesday. Required documents include a loan application form, a fund-use plan and a small business or SME certification. Application forms are available on the Dongdaemun-gu District Office website under the "District News" or "Public Notices" board.
"I hope this support will be like a welcome rain for the local small business owners who have been quietly holding their ground amid the hardships of high interest rates and sluggish consumer spending," Choi said. "We will continue to actively reflect the voices from the field and push forward with effective support measures so that small business owners — the roots of our local economy — can overcome this crisis and leap forward again."
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