Seoul, South Korea – The Seoul Metropolitan Government announced on January 13th that it will be expanding its loan program for social enterprises starting from January 14th. This move is aimed at supporting the stable operations and enhancing the competitiveness of these businesses.
The total loan amount has been increased by 1 billion won to 60 billion won compared to the previous year, and the interest rate has been reduced from 2% to 1.75%. To alleviate the burden on businesses struggling due to prolonged high inflation and interest rates, the loan limit has been raised from 300 million won to 400 million won per business.
Eligible applicants include small and medium-sized social enterprises located in Seoul, as well as social ventures as defined by the Seoul Social Venture Support Ordinance. Social enterprises include (preliminary) social enterprises, cooperatives, community enterprises, and self-help enterprises. However, businesses engaged in entertainment, gambling, pleasure, speculation, or those ineligible for credit guarantee support are excluded.
The final decision on the loan amount and eligibility for each business will be made by the Seoul Credit Guarantee Foundation based on an internal evaluation of the business's creditworthiness, national and local tax delinquency, and other factors. Loans will be provided under a repayment schedule with a one-year grace period and four years of principal amortization.
Businesses that have already received loans from the Seoul SME Development Fund's Social Economy Account (formerly the Social Investment Fund) and are currently repaying them can apply for new loans up to the amount remaining as of the application date.
Applications can be made non-face-to-face through the Seoul Credit Guarantee Foundation's mobile app starting from January 14th. For in-person applications, individuals can make a reservation through the mobile app or the Seoul Credit Guarantee Foundation's website (seoulshinbo.co.kr) and visit the branch on the reserved date. The application period will continue until the funds are depleted. For inquiries and consultations, please contact the Seoul Credit Guarantee Foundation's customer center at 1577-6119.
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