Yangcheon-gu to offer low-interest loans to local small businesses

Yangcheon-gu in Seoul announced Monday that it will provide 2 billion won ($1.39 million) in low-interest loans through its small and medium-sized enterprise development fund to support local businesses and small merchants.

According to the Financial Supervisory Service, the delinquency rate on SME loans stood at 1.00 percent as of the end of May, the highest in 11 years. The district had already extended 1.9 billion won to 27 businesses in the first half of this year and will provide an additional 2 billion won in the second half.

Manufacturing firms may apply for up to 300 million won, while wholesale, retail and other businesses are eligible for up to 80 million won. Loans carry a two-year grace period followed by equal installment repayments over three years. The annual interest rate of 0.8 percent is the lowest among Seoul's autonomous districts.

"We will continue to closely monitor businesses' funding needs and operating conditions, and provide tailored support to help the local economy recover and grow," Yangcheon-gu District Mayor Lee Gi-jae said.