Three Major Banks Contribute a Total of 29 Billion KRW
KODIT to Provide Guarantee Support Worth Approximately 1.2 Trillion KRW Using These Funds
Benefits Include Preferential Guarantee Ratios and Reduced Guarantee Fees
On the 27th, the Korea Credit Guarantee Fund (KODIT) announced that it has signed a 'Financial Support Agreement for the Recovery of the Real Economy and Strengthening of Industrial Competitiveness' with Kookmin Bank, Woori Bank, and Hana Bank, and will begin supporting small and medium-sized enterprises (SMEs) with competitiveness and technological capabilities.
According to the agreement, the three commercial banks will contribute a total of 29 billion KRW (20.5 billion KRW in special contributions and 8.5 billion KRW in guarantee fee support), and KODIT plans to use these contributions as funds to provide guarantees worth approximately 1.2 trillion KRW.
The guarantee support targets under the agreement include ▲companies engaged in new growth engine industries ▲export and overseas expansion companies ▲venture companies ▲companies excelling in job creation ▲SMEs registered in the technology market, among others.
KODIT will apply a 100% guarantee ratio for three years to companies eligible for the special contribution agreement guarantees and provide a 0.2 percentage point reduction in guarantee fees. Additionally, through the guarantee fee support agreement guarantees, a 0.5 percentage point guarantee fee support will be provided.
A KODIT official stated, "We plan to support smooth funding and reduction of financial costs for SMEs to lead the rapid recovery of the real economy and strengthen the competitiveness of our industry," adding, "We will continue to do our best to support SMEs, the backbone of our economy, so that they can become the driving force of economic growth."
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