IBK Industrial Bank Launches 'Mid- to Long-Term Interest Rate Stabilization Corporate Loan'

Increased Volatility in Financial Markets
Medium- to Long-Term Liquidity Support for Companies Concerned About Operating Fund Procurement

[Asia Economy Reporter Sim Nayoung] IBK Industrial Bank announced on the 23rd that it has launched the 'Mid- to Long-term Interest Rate Stabilization Loan' to support small and medium-sized enterprises (SMEs) struggling due to high interest rates, high exchange rates, high inflation, and worsening domestic and international economic conditions.

As part of the government's response program for the 84 trillion won-scale SME financial support plan, the Mid- to Long-term Interest Rate Stabilization Loan is a loan product that supplies low-interest working capital for up to 2 billion won per company over three years to SMEs that need stable working capital, alleviating the high interest burden of mid- to long-term loans.

Unlike the usual three-year working capital loans that apply the three-year market interest rate throughout the loan period, this product applies low one- and two-year market interest rates in the first and second years respectively, supporting SMEs in reducing their interest burden.

Additionally, if market interest rates fall during the loan period, fees for early repayment are reduced to ease customer burdens, providing inclusive financial support to help overcome the crisis.

An IBK Industrial Bank official stated, "With the prolonged triple hardship, the demand for working capital is increasing, making this year a crucial year for IBK, a policy financial institution," adding, "We will do our best to support SMEs so that they can overcome the crisis and make a fresh start."