A 20 billion won special guarantee fund will help ease the financial burden on small businesses and self-employed operators, with the district covering interest payments for the first year. The program launches in January 2027.
Geumcheon-gu signed an MOU Tuesday with the Seoul Credit Guarantee Foundation and several financial institutions to launch a zero-interest loan support program aimed at helping small businesses and self-employed operators struggling with high interest rates and the economic slowdown.
The program is designed to help small businesses with limited collateral access loans through financial institutions. Participating lenders include Woori Bank, Hana Bank, the Saemaul Geumgo cooperative and Kakao Bank, alongside the Seoul Credit Guarantee Foundation. Together, they plan to supply a total of 20 billion won ($15.1 million) in special guarantees, funded by contributions from the participating financial institutions.
Of the 20 billion won in special guarantees, Geumcheon-gu will cover interest payments for the first year on loans backed by 17.5 billion won of that total. However, the 2.5 billion won portion funded by Kakao Bank's contribution will not be eligible for the district's interest subsidy.
Eligible applicants are small businesses and self-employed operators that have run a business in Geumcheon-gu for at least six months and meet the guarantee screening criteria — including the creditworthiness of the business owner — set by the relevant agencies. Those wishing to apply can visit the Seoul Credit Guarantee Foundation's Geumcheon branch for a consultation and guarantee review before submitting a loan application to one of the participating financial institutions.
Loans range from a minimum of 10 million won to a maximum of 50 million won per business. Repayment terms call for a one-year grace period followed by equal installments over four years, with a variable interest rate applied. Geumcheon-gu will pay the interest accrued during the first year directly to the lending institution. The program is set to launch in January 2027.
Through the initiative, Geumcheon-gu aims to ease the financial burden on small businesses, support stable operations, and help revitalize local commercial districts and the broader district economy.
Geumcheon-gu District Mayor Choi Ki-chan said he hoped the program would help small business owners "ease their financial burden and run their businesses with greater stability" amid high interest rates and the economic downturn, adding that the district would continue to provide support for the financial stability of small businesses.
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