Daegu Bank, "Cheer Up Daegu"... Offers Various Financial Support Measures

Kim Tae-o, President of Daegu Bank

[Asia Economy Reporter Kim Min-young] DGB Daegu Bank announced on the 25th that it will implement various financial support policies to assist companies affected by the novel coronavirus disease (COVID-19) and to prevent the stagnation of the local economy in the Daegu and Gyeongbuk regions, where numerous confirmed COVID-19 cases have occurred.

First, since the beginning of this month, the bank has been providing a special COVID-19 financial support loan worth 100 billion KRW to encourage the early normalization of companies affected by COVID-19. This targets small and medium-sized enterprises operating in virus-confirmed areas, as well as companies engaged in or planning export-import transactions with overseas confirmed regions.

In particular, support has been extended to indirectly affected businesses outside the confirmed areas, including lodging and restaurant industries, arts, sports and leisure-related services, educational services, wholesale and retail trade, healthcare, and social welfare services, thereby broadening the scope of support for self-employed individuals. Eligible companies can receive support up to 500 million KRW per company, with preferential interest rates applied through branch-wide (full authority) approval, and handling criteria have been significantly relaxed to enable swift financial support.

The COVID-19 installment repayment deferral system is also being implemented. It applies to loan accounts with principal repayments due within one month or currently under installment repayment, allowing a basic repayment deferral period of up to three months. However, if objective evidence of COVID-19-related damage is provided, the deferral can be extended up to six months.

The COVID-19 damage guarantee loan, conducted in cooperation with the Daegu Credit Guarantee Foundation, is provided on a scale of 100 billion KRW, with support available up to 70 million KRW per company without early repayment fees. Additionally, in partnership with Korea Gas Corporation, a special mutual growth fund support is being implemented, offering small and medium-sized enterprises and small business owners in Daegu and Gyeongbuk up to 500 million KRW per company with interest rate reductions up to 2.7% annually through the ‘Special Loan for a Better Local Economy.’

Foreign exchange fee reductions are also being applied. For export-import clients in China affected or expected to be affected by COVID-19, all fees arising from export-import operations are being reduced. Regarding export bills, efforts are being made to prevent confusion in export operations by providing notices about delays and non-delivery areas for transport documents throughout China, excluding Wuhan in Hubei Province.

Furthermore, the ‘Gyeongsangbuk-do Small and Medium Enterprise Happiness Fund’ is being implemented to support small and medium-sized enterprises affected by the spread of COVID-19 in Gyeongsangbuk-do, providing emergency management funds totaling 10 billion KRW with a limit of up to 500 million KRW per company.

Kim Tae-oh, President of Daegu Bank, stated, “We will faithfully fulfill our role as a partner who can stand together with local companies in times of difficulty.”