Seoul's Seongbuk-gu district will offer 250 million won ($177,000) in social investment fund loans in the second half of this year to support local social economy enterprises struggling with a cash crunch amid sluggish growth, high interest rates and a delayed domestic demand recovery, district Mayor Lee Seung-ro announced.
The Seongbuk-gu social investment fund loan program, which runs twice a year, carries an ultra-low annual interest rate of 0.75%. Social economy enterprises based in Seongbuk-gu are eligible for loans repayable over up to five years in equal installments of principal and interest, with no grace period.
The maximum loan per company is 40 million won. For this second-half round, the district has expanded eligibility: companies that previously received a loan and are still repaying it may now apply for additional financing equal to the amount already repaid. For example, a company that originally received 40 million won and has since repaid 30 million won may apply for an additional 30 million won.
Applications for the second-half loan round are open from Aug. 24 to Sept. 2. Interested companies should check the Seongbuk-gu district office website under public notices and new announcements, then submit the required documents in person at the Local Economy Division on the eighth floor of the district office.
Recipients and loan amounts will be finalized after a three-stage review: an initial document screening, an on-site inspection and a final committee evaluation.
"Financial market uncertainty continues to weigh on social economy enterprises," district Mayor Lee said. "Seongbuk-gu will keep pushing forward with ultra-low-interest loan support so that businesses can find opportunities to grow even in difficult economic conditions."
For further details on the loan program, contact the Social Economy Team of the Local Economy Division at the Seongbuk-gu district office.
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