DGB Daegu Bank and Daegu Shinbo Join Hands to Support Financing for SMEs and Small Businesses

From the left, Hwang Byung-wook, Chairman of Daegu Credit Guarantee Foundation, and Lim Sung-hoon, President of DGB Daegu Bank

[Asia Economy Reporter Kim Hyo-jin] DGB Daegu Bank announced on the 12th that it has signed a 'Daegu Small and Medium Business and Small Merchant Financial Support Business Agreement' with the Daegu Credit Guarantee Foundation.

The agreement was signed with the purpose of alleviating the worsening management conditions of small and medium-sized enterprises and small merchants struggling due to the economic downturn. Under this agreement, DGB Daegu Bank aims to fulfill its social responsibility in the local community and practice ESG (Environmental, Social, and Governance) management.

DGB Daegu Bank will make a special contribution of 3 billion KRW to the Daegu Credit Guarantee Foundation, which will use the funds to provide guarantees worth 45 billion KRW to small and medium-sized enterprises and small merchants in the Daegu area after guarantee screening.

The special guarantee will be implemented starting today, and companies located in Daegu seeking financial support can apply for working capital loans up to 200 million KRW at any DGB Daegu Bank branch.

Through preferential support for guarantee fees from the Daegu Credit Guarantee Foundation and linked support for interest subsidy on Daegu City’s management stabilization funds, small and medium-sized enterprises located in Daegu can receive loan interest support ranging from 1.3% to 2.2%, minimizing their financial burden.

President Lim Seong-hoon stated, “Taking this agreement as an opportunity, we will further expand urgent financial support for local small and medium-sized enterprises and small merchants struggling due to the economic downturn and actively practice ESG management by fulfilling our social responsibility in the region.”