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 local small and medium-sized enterprises and small business owners struggling amid the economic downturn.
The signing ceremony brought together Jongno-gu District Mayor Yoo Chan-jong, Seoul Credit Guarantee Foundation Standing Director Park Jang-hyeok, Hana Bank Jongno Regional Head Cheon Byeong-ju and Kakao Bank Credit Division Head Kim Seong-su, who pledged to cooperate in relieving the funding difficulties facing small business owners and expanding financial support.
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 lack sufficient collateral to secure financing.
The expansion brings Jongno-gu's total special credit guarantee program to 36.5 billion won, up from 31.5 billion won. The district also plans to link the program with the Seoul Metropolitan Government's interest-support project to further reduce the financial burden on small business owners.
Eligibility is open to small and medium-sized enterprises registered and operating within Jongno-gu, excluding businesses in restricted or prohibited categories. The guarantee limit per business is up to 800 million won, including any existing balance, with repayment structured as a one-year grace period followed by four years of equal installments. The actual guarantee 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 Jongno-gu — upon receipt of a guarantee certificate from the Seoul Credit Guarantee Foundation. Inquiries about the special credit guarantee program can be directed to the foundation's Jongno General Support Center.
"I hope this expansion of the special guarantee program provides real, practical help to small business owners facing difficulties in securing funds," District Mayor Yoo 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."
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