Gangdong-gu District Mayor Lee Su-hee. [Gangdong-gu]
Gangdong-gu District Mayor Lee Su-hee. [Gangdong-gu]

Gangdong-gu in Seoul announced Monday that it signed a special credit guarantee MOU with Saemaul Geumgo and the Seoul Credit Guarantee Foundation on Friday, expanding financial support for small businesses and self-employed merchants in the district.

Under the agreement, Saemaul Geumgo contributed 200 million won ($150,000), raising the guarantee ceiling by 2.5 billion won. Gangdong-gu will continue its special credit guarantee program this year backed by a record total fund of 74.73 billion won.

Eligible applicants are small businesses and sole proprietors registered in Gangdong-gu for at least three months. Businesses that received credit guarantee support within the past year are excluded. The guarantee limit is up to 70 million won per business after screening, while preferred applicants — such as community volunteers — may receive up to 100 million won.

Repayment terms extend up to five years, including options such as a one-year grace period followed by four years of installment payments. Businesses using Seoul Metropolitan Government partner bank funds will be subject to a variable interest rate of around 3.0 percent annually, based on rates as of Tuesday.

As of late October, the district had provided credit guarantees totaling 52.7 billion won to 1,532 businesses through the program this year. The district also operated three on-site consultation centers this year, offering in-depth business counseling and guarantee consultations to 601 small business owners.

"I am grateful to Saemaul Geumgo for contributing to securing the funding," District Mayor Lee Su-hee said. "We will continue to pursue cooperative policies that bring together the private sector and financial institutions."


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