Dongjak-gu launches interest-free loan program for young entrepreneurs

Seoul's Dongjak-gu announced Tuesday it will launch a financial support program for young entrepreneurs in the district, aimed at easing access to capital and reducing loan burdens.

The district signed an MOU with the Seoul Credit Guarantee Foundation and KB Kookmin Bank on Monday.

The program targets entrepreneurs aged 39 or younger — born in 1986 or later — who run small businesses or small and medium-sized enterprises in Dongjak-gu and have been in operation for seven years or less. Loans are capped at 100 million won ($74,000) per business, with a full interest waiver for the first year when a credit guarantee is obtained. In the second through fourth years, the Seoul Metropolitan Government will cover 1.8 percent of the interest.

Young business owners wishing to apply may visit the Seoul Credit Guarantee Foundation's on-site consultation desk on the first below-ground floor of the Dongjak-gu district office starting Oct. 7, bringing required documents including a copy of their business registration certificate and a copy of their business premises lease agreement. Applications will be accepted until funds run out. The desk will operate every Monday and Wednesday through Nov. 30, from 10 a.m. to noon and from 2 p.m. to 4:30 p.m.

"The financial burden is especially heavy in the early stages of starting a business, so I hope this support will make a real difference for young entrepreneurs," District Mayor Ryu Sam-young said.

Dongjak-gu has been stepping up support for small business owners in the district. In July, the district raised its subsidy rate for flood and storm insurance premiums — designed to compensate small business owners for property damage caused by extreme weather — from 55 percent to 68.5 percent.