Dongjak-gu announced it will launch its second round of small and medium-sized enterprise development fund loans for 2026, aimed at stabilizing business operations and revitalizing the local economy for small businesses and self-employed entrepreneurs in the district.
The program offers fixed-rate loans at an annual interest rate of 1.5 percent, designed to ease the financial burden on small business owners amid prolonged high interest rates and inflation.
The district carried out a first round of loans in March, providing 1.77 billion won ($1.19 million) to 46 local businesses. Through this second round, it plans to extend an additional 1.23 billion won in funding.
Eligible applicants are small and medium-sized enterprises and small business owners with a place of business in Dongjak-gu that have been in operation for at least three months.
The loan limit is up to 50 million won per business. Funds may be used for facility improvements or operating expenses such as rent, utilities and labor costs.
Repayment terms allow borrowers to choose a schedule within a five-year period, with a grace period of either one or two years based on their financial circumstances.
Businesses wishing to apply must submit the required documents in person at the Economic Policy Division of Dongjak District Office (70 Jangseungbaegi-ro, 7th floor) from Monday through July 31.
The district will convene a fund management review committee in August to finalize the list of recipients, with results communicated individually at a later date. For further inquiries, contact the Economic Policy Division of Dongjak District Office.
Dongjak District Mayor Ryu Sam-young said he hopes the loan program will serve as "a real lifeline for local small and medium-sized enterprises and small business owners going through a difficult period of high interest rates and high inflation," adding that the district will continue to expand tailored support measures to help small business owners achieve economic self-sufficiency.
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