IBK, 1 Trillion KRW Interest Rate Benefit Program for Small Business Owners Launched

Up to 1.2 Percentage Point Reduction on New Working Capital and Facility Loans for Small Businesses

IBK Industrial Bank announced on the 27th that it will implement the Small Business Value Finance Win-Win Fund program for the second time this year, following last year. This is to support small business owners who are struggling due to low growth and delayed domestic demand recovery.

Seoul Jung-gu Euljiro IBK Industrial Bank of Korea Headquarters Building Exterior. Provided by Industrial Bank of Korea

This is a loan and deposit interest rate preferential support program worth 1 trillion KRW funded by IBK's own resources. IBK plans to provide interest rate preferential support in three areas through the fund: a growth-promising small business support program (300 billion KRW), a small business growth promotion facility investment program (500 billion KRW), and a small business deposit and savings preferential interest rate program.

Specifically, for promising small businesses such as companies signing new export contracts, companies increasing employment, and patriotic stores designated by the Military Manpower Administration, working capital loan interest rates will be reduced by up to 1.2 percentage points. In particular, IBK uses its own alternative evaluation model, the big data model, to support small business owners with insufficient financial information history.

For small businesses that need to enhance competitiveness through facility investment, facility fund loan interest rates will also be reduced by up to 1.0 percentage points. Companies practicing green management and those holding intellectual property rights will receive interest rate reduction benefits of up to 1.2 percentage points.

Kim Sung-tae, the bank president, said, "This is part of our own financial support for small business owners facing difficulties," adding, "We will continue to prepare various support measures to help small businesses overcome crises and faithfully fulfill our role as a policy financial institution."