Jongno-gu expands special credit guarantee program to W36.5b

Jongno-gu signed a special credit guarantee MOU with the Seoul Credit Guarantee Foundation, Hana Bank and Kakao Bank on Tuesday to ease the financial burden on small and medium-sized enterprises and small business owners in the district struggling amid the economic slowdown.

Under the agreement, Jongno-gu, the Seoul Credit Guarantee Foundation and the two financial institutions will provide an additional 5 billion won ($3.68 million) in special credit guarantees targeting small business owners who have difficulty securing financing due to insufficient collateral.

The expansion brings the district's total special credit guarantee support to 36.5 billion won, up from 31.5 billion won. The program will also be linked to the Seoul Metropolitan Government's interest subsidy project to further reduce the financial burden on small business owners.

Eligibility is open to small business owners registered in Jongno-gu, excluding those in restricted or prohibited industries. The guarantee limit per business is up to 800 million won, including any existing balance, with repayment structured over four years in equal installments after a one-year grace period. The actual limit may vary depending on a business's credit rating and sales.

Loans can be drawn through Kakao Bank or Hana Bank — the two partner financial institutions in the district — upon receiving a guarantee certificate from the Seoul Credit Guarantee Foundation.

Last year, the district provided a total of 30.8 billion won in financial support to help small business owners stabilize their operations and build a foundation for self-sufficiency.

"I hope this expansion of the special guarantee program provides meaningful help to small business owners who are struggling to secure funding," Jongno-gu District Mayor Yoo Chan-jong said. "We will continue to work closely with financial institutions and related agencies to support the stability of small businesses and invigorate the local economy."