Gwangjin-gu is rolling out a second-half 2026 SME development fund loan program to ease the financial strain on local businesses and small business owners struggling amid an economic slowdown and high interest rates.
The total support pool stands at 2.56 billion won ($1.75 million). Applicants must have been registered as a business in Gwangjin-gu for at least six months as of the application date and must be able to provide collateral — either real estate collateral under bank lending regulations or a credit guarantee certificate.
Loans carry a fixed annual interest rate of 1.5%. Individual business owners may borrow up to 100 million won, while corporations may borrow up to 200 million won. The funds may be used for operating costs, facility investment or technology development. Repayment terms are a one-year grace period followed by equal installments over three years. However, the following are excluded from eligibility: businesses currently repaying a Gwangjin-gu SME development fund loan or a Gwangjin-type special guarantee loan; businesses in sectors excluded from policy fund support, such as financial and insurance services and adult entertainment establishments; businesses that have suspended or ceased operations; and individuals or entities with outstanding national or local tax arrears.
Applications are accepted from Thursday through Aug. 12. Applicants should submit a loan application form, a business plan and a copy of their business registration certificate in person at the Local Economy Division of the Gwangjin-gu District Office. Further details are available on the Gwangjin-gu District Office website or by contacting the Local Economy Division directly.
"I hope this loan support will provide real, practical relief from financial difficulties and help stabilize operations for small and medium-sized enterprises and small business owners facing hardship amid the economic slowdown and changing business environment," district mayor Kim Gyeong-ho said. "We will continue to pursue a range of support policies to ease the financial burden on businesses and inject vitality into the local economy."
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