Oh Se-hoon Pledges Record 3 Trillion Won in Support for Small Businesses

[Financial News] Oh Se-hoon, the People Power Party candidate for Seoul Metropolitan City Mayor, has pledged to inject a record 3 trillion won in policy funds to support small businesses. His plan is to strengthen support at every stage, from start-up and growth to crisis management, closure, and a fresh start, in an effort to revive small businesses, which form the backbone of Seoul's economy.
Oh unveiled the 'Comprehensive Support for Small Businesses' pledge on the 13th at Daewang Building in Jongno District, the campaign headquarters.
He said that small businesses play a central role in Seoul, noting that they account for more than 90% of all establishments and roughly half of employment. He added that financial support for those struggling because of tight funding conditions currently stands at about 2.7 trillion won this year, and that he would expand it to more than 3 trillion won in total.
The financial support package for small businesses will be divided into direct loans, partnership funds with commercial banks, and the Safe Account. In particular, he plans to lower the actual interest burden from the current 1.9% to 3.1% range to 1.7% to 2.9%. He will also allocate 500 billion won to the Safe Account, a dedicated overdraft account for self-employed workers, and extend the maturity of the 300 billion won Hope Companion Fund, which helps borrowers refinance high-interest loans at lower rates. An additional 400 billion won in support will also be prepared for vulnerable businesses hit by high interest rates, high prices, and a weak won.
Oh is also pushing a 'Digital Capability Level-Up Project' for middle-aged small business owners who are relatively less familiar with digital tools. The move reflects the view that digital adaptability has become a key factor for survival as the self-employed market is increasingly reorganized around delivery apps and online platforms.
The project will provide hands-on training at different levels for digital transformation and connect businesses with experts to help them build online strategies suited to their industry and store conditions. It will also cover up to 3 million won in costs for digital transition, including social media advertising and online store setup. The program will closely support participants for two years so that it leads to real sales improvements.
In 2023, the Seoul Metropolitan Government carried out a 'Digital Transformation Support for Middle-Aged Small Businesses' program, which provided support over two years from digital capability assessments to training, solutions, and follow-up management, and confirmed its effectiveness.
According to a survey released last year, participating businesses saw average sales rise by 9.8%. Their annual sales growth rate was 11.1 percentage points higher than that of non-participating businesses, and their credit ratings improved by 11.7 percentage points more. The new 'Small Business Digital Capability Level-Up' pledge builds on those results by sharply expanding the scale and scope of support and further upgrading the program.
A tighter safety net will also be put in place for small businesses in crisis. The plan is to reach out before they are forced to close, reduce closure costs if shutdown becomes unavoidable, and provide a stepping stone for those trying to start again.
Real-time monitoring of warning signs will also be introduced to identify struggling small businesses early. Through one-on-one customized management diagnostics, businesses will be classified as sustainable or near-collapse, and tailored solutions will be provided for each group. For small business owners who want to try again after closing, the 'Restart Project' will be launched. It will provide up to 2 million won in initial re-startup funds, along with practical help such as industry diagnostics, business plan development, and marketing improvements.

[email protected] Lee Seol-young Reporter