Jungnang-gu District Chief Ryu Gyeong-gi extended a total of 107.7 billion won ($73.5 million) in loans to more than 2,700 small and medium-sized enterprises and small business owners over the eight years spanning his seventh and eighth terms in office.
The district announced Thursday that it had provided 107.7 billion won in loan support to more than 2,700 local small and medium-sized enterprises and small business owners from the second half of 2018 through the first half of 2026, contributing to the stabilization of the local economy.
The support gave a significant boost to the business operations of local merchants and small enterprises.
The district built a two-track financial support system centered on loans from its own small and medium-sized enterprise development fund and special credit guarantee loans arranged in partnership with commercial banks and the Seoul Credit Guarantee Foundation, helping stabilize the finances of businesses that struggled to secure funding due to insufficient collateral or high interest rate burdens.
The development fund loans carried a low annual interest rate of around 1.5 percent to ease the financial burden on businesses, while the special credit guarantee loans provided up to 200 million won per business to help micro-enterprises overcome cash shortages and recover financially.
The district also broadened eligibility to focus on micro-enterprises and businesses requiring small loans, and streamlined the process from application to disbursement to ensure funds reached recipients in a timely manner.
The district has continued its financial support this year. In the first half, it signed agreements with four major commercial banks — Woori Bank, KB Kookmin Bank, Hana Bank and Shinhan Bank — as well as saemaul credit unions, securing an additional 26.25 billion won in financing capacity as part of a proactive effort to stabilize livelihoods in response to shifting external economic conditions.
Applications are accepted year-round through the Seoul Credit Guarantee Foundation's Jungnang General Support Center. Once a credit review and guarantee assessment are completed and a guarantee certificate is issued, loans are disbursed through affiliated saemaul credit unions in the district. The district plans to provide administrative support to ensure funds are delivered promptly.
"I hope the 107.7 billion won in loan support extended over eight years has provided real help in stabilizing the operations of small and medium-sized enterprises and small business owners struggling with funding difficulties," Ryu said. "Going forward, we will continue to lower the barriers to financial support and steadily expand the scale of assistance so that small business owners, who are the backbone of the local economy, can sustain their livelihoods with stability."
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