Woori Bank joins Seoul program offering small businesses up to W20m in credit

300 billion won fund backed by Seoul, Seoul Credit Guarantee Foundation

Guarantee fee subsidy, unused-limit fee waiver included

Woori Bank's headquarters in Jung-gu, Seoul. [Herald DB]

Woori Bank will participate in the Seoul Metropolitan Government's "Ansim Tongjang No. 4" program, offering revolving credit lines of up to 20 million won ($14,600) to small business owners in Seoul. The bank will cover half of the guarantee fee charged at loan origination and waive fees for unused credit limits.

Woori Bank announced Tuesday that it signed an MOU with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation on Monday to join the program.

Ansim Tongjang No. 4 provides revolving credit lines so that small businesses in Seoul can draw on operating funds whenever needed. The total supply across all participating financial institutions is 300 billion won, with a maximum loan limit of 20 million won per business.

Eligibility is limited to sole proprietors operating a business in Seoul. Applicants must have been in business for at least one year and hold a NICE credit score of 600 or above. They must also show combined sales of at least 2 million won over the past three months, or declared annual sales of at least 10 million won over the past year.

Loans run for one year with a bullet repayment at maturity. After review, they can be extended in one-year increments for up to five years in total.

Woori Bank will cover 50 percent of the guarantee fee that customers pay when first taking out a loan and will waive the unused-limit fee charged when borrowers do not draw down their full credit line. The measures are designed to let small business owners tap credit only when they need it while keeping ancillary costs to a minimum.

A promotional image for the Seoul Metropolitan Government's Ansim Tongjang support program for self-employed workers. [Seoul Metropolitan Government]

Applications can be submitted online. Starting at 9 a.m. Thursday, applicants may apply for a guarantee through the Seoul Credit Guarantee Foundation's mobile app and, once approved, request the loan through Woori Bank's WON Business Banking platform. During the first five business days after the program launches, a rotating-day system will apply based on the last digit of the business owner's birth year.

Woori Bank previously participated in the Ansim Tongjang No. 2 and No. 3 programs.

"Small business owners need both ready access to funds and relief from financial costs," said Park Jun-seok, head of Woori Bank's small-office and home-office business division. "We will make sure Ansim Tongjang serves as a reliable source of operating capital for business owners, and we will continue working with local governments to expand contactless financial services that can be used conveniently in the field."

Ansim Tongjang is a revolving credit product exclusively for the self-employed that Seoul launched in 2025 as the first of its kind in the country. Having supplied 200 billion won worth of credit lines in the first half of this year, the city will add another 300 billion won through this fourth program. The maximum loan limit has also been raised from 10 million won to 20 million won.

rim@heraldcorp.com