Daegu Urban Corporation and IBK Join Hands to Create 10 Billion Won Co-Growth Fund to Support Small and Medium Construction Firms

Up to 500 million KRW support per company

Maximum 3.37% interest rate benefit applied

Daegu Urban Development Corporation (President Jung Myungseop) signed a business agreement on the 4th with IBK Industrial Bank of Korea to establish a "Co-Prosperity Fund" worth 10 billion KRW, aiming to support local small and medium-sized construction companies facing management difficulties due to the downturn in the real estate market.

This agreement involves Daegu Urban Development Corporation and IBK Industrial Bank of Korea jointly creating a fund to assist small and medium-sized construction companies struggling with ongoing financial challenges caused by prolonged high interest rates, high inflation, and an increase in unsold properties.

Officials from Daegu Urban Development Corporation and Industrial Bank of Korea are posing for a commemorative photo after signing a business agreement for the 'Win-Win Growth Fund.'

The fund targets small and medium-sized construction companies in the Daegu area that participate in projects commissioned by Daegu Urban Development Corporation, and will provide financial support of up to 500 million KRW per company, with a total fund size of 10 billion KRW.

The loan period is up to one year, and in addition to the basic reduced interest rate of 1.97%, preferential rates of up to 1.40% may be applied depending on the company's credit rating and collateral, allowing companies to benefit from a maximum interest rate reduction of 3.37%.

Since 2021, Daegu Urban Development Corporation has been operating the "Precious Partnership Fund," a 20 billion KRW fund supporting small business owners and SMEs.

With the additional 10 billion KRW secured through this "Co-Prosperity Fund" agreement, more companies are expected to benefit, contributing to the revitalization of the local economy.

Jung Myungseop, President of Daegu Urban Development Corporation, stated, "We will strive through this agreement to help the local construction industry overcome its crisis and grow in a better environment," and added, "We will continue to support the sustainable growth of local SMEs and job creation through ongoing interest and assistance."