District signs MOU with Shinhan Bank, Kakao Bank and Seoul Credit Guarantee Foundation; 500 million won in bank contributions to back 6.25 billion won in special guarantees
Guro-gu will roll out a special credit guarantee program for small and medium-sized enterprises and small business owners in the district.
The program offers preferential terms — a guarantee ratio of 95 percent and an annual guarantee fee rate of no more than 1 percent — and is expected to deliver significant benefits to local merchants and businesses.
Guro-gu has partnered with Shinhan Bank, Kakao Bank and the Seoul Credit Guarantee Foundation to provide financial support to small and medium-sized enterprises and small business owners in the district.
The district signed a special contribution MOU with the three institutions Wednesday, aimed at strengthening financial support for the local economy.
The agreement was designed to help local small and medium-sized enterprises and small business owners that struggle to secure funding due to insufficient collateral.
Under the MOU, Shinhan Bank will contribute 200 million won ($150,000) and Kakao Bank 300 million won to the Seoul Credit Guarantee Foundation. Drawing on the combined 500 million won in contributions, the foundation will provide 6.25 billion won in special guarantees — a leverage ratio of 12.5 times. The guarantee allocation by bank is 2.5 billion won for Shinhan Bank and 3.75 billion won for Kakao Bank.
Guro-gu will inform businesses about the program, while the two banks will handle contribution payments and loan processing. The Seoul Credit Guarantee Foundation will conduct credit assessments, review guarantee applications and issue credit guarantee certificates to facilitate the financial support.
The program is open to small and medium-sized enterprises and small business owners based in Guro-gu. Those who pass the foundation's screening and receive a special credit guarantee certificate will be eligible to apply for loans at the participating financial institutions.
Support will be rolled out sequentially according to each financial institution's schedule and will continue until the guarantee limit for each bank is exhausted.
For details on application timing and procedures, prospective applicants may contact the Seoul Credit Guarantee Foundation's Guro General Center.
"I hope this agreement provides real, practical help to small and medium-sized enterprises and small business owners struggling to secure funding," Guro-gu District Mayor Jang In-hong said. "We will continue to strengthen cooperation with financial institutions to support the management stability of local businesses and invigorate the local economy."
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