Gyeonggi Shinbo Partners with Kookmin and Hana Bank to Provide Up to 800 Million KRW Support for 'ESG and K-New Deal Companies'

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Credit Guarantee Foundation is providing up to 800 million KRW per company to ESG management companies and K-New Deal companies.

ESG management is a recently trending keyword that emphasizes environmental (Environment), social (Social), and governance (Governance) aspects in corporate activities rather than unconditional production and development.

K-New Deal is a representative national development strategy prepared by the government to enhance national and industrial competitiveness and overcome the COVID-19 economic crisis, known as the "Korean New Deal 2.0."

On the 28th, Gyeonggi Credit Guarantee Foundation announced that it held the "Gyeonggi-do ESG Management and K-New Deal Company Financial Support Business Agreement Ceremony" with Kookmin Bank and Hana Bank at the Gyeonggi Credit Guarantee Foundation conference room in Gwanggyo Technovalley, Suwon.

This business agreement was planned to foster ESG management companies that practice eco-friendliness, social value, and transparent management beyond profit generation among small and medium enterprises and small business owners in the province, and to actively support digital New Deal companies and innovative companies to nurture them as representative companies in the province.

According to the business agreement, Kookmin Bank newly contributed 3.5 billion KRW and Hana Bank contributed 2 billion KRW to Gyeonggi Credit Guarantee Foundation.

Based on the contributions from the two institutions, Gyeonggi Credit Guarantee Foundation will support up to 800 million KRW per company. The guarantee period is up to 5 years, and the lending banks are Kookmin Bank and Hana Bank.

Through the agreement guarantee, Gyeonggi Credit Guarantee Foundation will preferentially apply the guarantee ratio from the existing 85% to 100% (90% for amounts exceeding 50 million KRW). The guarantee fee rate will also be preferentially reduced by 0.2 percentage points from the final calculated guarantee fee.

Lee Min-woo, Chairman of Gyeonggi Credit Guarantee Foundation, emphasized, "The importance of ESG management companies and K-New Deal companies has recently been strengthened, and we are striving to actively foster these companies through cooperation with banks." He added, "Our foundation will endeavor to implement various strategic support policies in line with the times as a business success partner for small and medium enterprises and small business owners in the province."