Seoul to Provide Up to 20 Million Won for the Self-Employed, Adding 300 Billion Won in Funding

[Financial News] Seoul Metropolitan Government has expanded both the total size and the limit of Safe Account, a revolving credit line designed to ease funding pressure on self-employed workers in the city.
Seoul Metropolitan Government said on the 31st that it will launch "Safe Account No. 4" for the self-employed on Sept. 3. The new round will add 300 billion won in funding, following 200 billion won supplied in the first half of the year.
The support limit has been raised from a maximum of 10 million won to 20 million won. Support tiers will be divided more finely according to business history, credit score and sales, allowing limits to better match each applicant's situation. Existing users of Safe Account may also apply for additional funding within the 20 million won cap.
Seoul introduced Safe Account last year to help small self-employed businesses that struggle to clear the hurdles for ordinary bank loans and might otherwise turn to card loans, cash advances or illegal private lenders. Demand was so strong that applications for the first three rounds closed after an average of just 38 business days. Through the program, about 60,000 self-employed workers received a total of 600 billion won in emergency operating funds.
Starting with No. 4, support tiers will be divided into three levels based on a comprehensive review of business history, credit score and reported sales. Each tier will offer up to 10 million won, 15 million won or 20 million won. Existing users may also apply for up to an additional 10 million won if they meet the requirements.
The loan is structured as a revolving credit line, allowing borrowers to withdraw and repay funds as needed. Interest is charged only on the amount actually used. The lending rate stands at 5.12% a year, based on the CD rate plus 2.0% as of Aug. 27, 2026. Guarantee approval can be completed within one business day through an automated, non-face-to-face review on the mobile app.
Eligible applicants are sole proprietors with business locations in Seoul who have been in business for at least one year, recorded combined sales of at least 2 million won over the past three months or annual reported sales of at least 10 million won, and hold a personal credit score of 600 or higher from NICE Information Service. However, support is restricted for those who have used four or more cash advances on credit cards, borrowed from three or more institutions within the past three months, or whose existing guarantee balance plus the requested amount would exceed 100 million won. Those holding an outstanding guarantee for the government’s Biz Plus Card for small businesses, or a similar card guarantee or revolving credit balance from another regional credit guarantee foundation, are also ineligible for duplicate support.
The participating banks are Shinhan Bank, Woori Bank, KakaoBank Corp, K Bank, Toss Bank and Hana Bank. The repayment terms call for a lump-sum payment at maturity after one year, with annual extensions of up to five years. The guarantee fee is 1.0% per year.
Applications can be submitted through the Seoul Credit Guarantee Foundation mobile app from 9 a.m. on Sept. 3 until funds run out. During the first week, applications will be accepted on a five-day rotation based on the last digit of the representative's birth year. From Sept. 10, anyone may apply. Applicants should prepare documents such as lease agreements for the business site and residence, as well as exterior and interior photos of the business location. Applications must be submitted through the mobile app from the business address. Co-representative businesses, digitally vulnerable applicants aged 65 or older, and foreigners may also apply in person at a branch.
Park Kyung-hwan, director of the Seoul Metropolitan Government's Bureau of Livelihood and Labor, said, "This Safe Account No. 4 raises the usage limit to as much as 20 million won, broadens support tiers according to business conditions, and opens the door for existing users to apply again. We hope it will serve as a practical financial safety net for self-employed workers facing cash shortages." He added, "We will continue to refine our financial support policies by closely monitoring funding demand and business conditions on the ground so that self-employed workers can access appropriate financing when they need it."

[email protected] Lee Seol-young Reporter