The district adds 6.25 billion won to its existing 35 billion won fund, bringing this year's total to 41.25 billion won; new preferential terms offer up to 130% of standard guarantee limits for Dalbit Yajang merchants and young entrepreneurs
Jungnang-gu will provide an additional 6.25 billion won ($4.6 million) in special credit guarantees to ease the financial burden on local small business owners and young entrepreneurs and revitalize neighborhood commercial districts.
On Thursday, the district signed a special credit guarantee MOU with the Seoul Credit Guarantee Foundation, Hana Bank, Naver Pay and Naver at the Sangbong Meokja Alley commercial district to expand financial support for small businesses.
The district had originally secured 35 billion won in special credit guarantee funding for small businesses this year. With the additional 6.25 billion won committed under the new MOU, the total loan support for the year now stands at 41.25 billion won. The expansion aims to ease the financial strain on small business owners struggling with sluggish domestic demand and prolonged high interest rates.
The additional support introduces new preferential terms for young entrepreneurs and merchants in the Dalbit Yajang commercial zone. Eligible businesses can access loans with guarantee limits of up to 130% of the standard ceiling.
Eligible recipients include small business owners operating within designated Dalbit Yajang commercial zones — such as Sangbong Meokja Alley, selected under the Seoul Metropolitan Government's Dalbit Yajang development project — as well as young entrepreneurs in Jungnang-gu who are 39 or younger and have been in business for seven years or less. The district said the program is designed to accelerate the growth of the Dalbit Yajang commercial zone and support the stable operation of young-run businesses.
Applications can be submitted at the Seoul Credit Guarantee Foundation's Jungnang Comprehensive Support Center. Once applicants pass a guarantee review and receive a guarantee certificate, they can access loans through the participating financial institutions. The district said it will support the related procedures to ensure funds are disbursed in a timely manner.
"I hope this additional special credit guarantee support helps ease the management burden on small business owners and young entrepreneurs who are struggling to secure funding, and enables them to keep their businesses running with greater stability," Jungnang-gu District Mayor Ryu Gyeong-gi said. "We will continue to expand practical financial support for small businesses and strengthen the competitiveness of local commercial districts to bring vitality to the everyday economy."
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