15 Times Leverage: 90 Billion KRW Win-Win Guarantee Expansion
Daegu Credit Guarantee Foundation and KakaoBank Join Forces to Support Local SMEs
The Daegu Credit Guarantee Foundation (Chairman Park Jinwoo) will expand the "Daegu City Win-Win Agreement Guarantee" in partnership with KakaoBank to support small and medium-sized enterprises (SMEs) and small business owners in Daegu who are struggling due to high inflation and the ongoing economic downturn.
On June 2, Daegu Credit Guarantee Foundation and KakaoBank signed the "Daegu City Win-Win Financial Support Business Agreement" at KakaoBank's Pangyo headquarters.
Kim Seok, Head of KakaoBank Banking Group (right), is holding the agreement document together with Park Jinwoo, Chairman of Daegu Credit Guarantee Foundation, after signing the business agreement.
Under the agreement, KakaoBank will make a special contribution of 6 billion KRW to Daegu Credit Guarantee Foundation, which will implement the "KakaoBank Daegu City Win-Win Agreement Guarantee" with a scale of 90 billion KRW?15 times the contributed amount. Including the 2 billion KRW contributed by KakaoBank to Daegu Credit Guarantee Foundation in February, the total contribution in the first half of the year amounts to 8 billion KRW, supporting a total of 120 billion KRW in agreement guarantees.
The beneficiaries of this win-win agreement guarantee are SMEs and small business owners in Daegu whose representatives have a personal credit score of 595 or higher, with guarantees provided up to a maximum limit of 100 million KRW. Daegu Credit Guarantee Foundation will offer preferential terms such as a fixed guarantee fee of 0.9% per annum and a guarantee ratio of up to 100%. KakaoBank will also support 50% of the guarantee fee for customers who take out loans backed by the guarantee.
In addition, Daegu City recently designated KakaoBank as the first internet bank to participate as a business stabilization fund agreement bank. Therefore, if companies link this agreement guarantee with the business stabilization fund, they can receive up to 2.2% interest support for one year, helping to ease the financial burden on businesses.
Park Jinwoo, Chairman of Daegu Credit Guarantee Foundation, stated, "KakaoBank's additional contribution will be a great support to local SMEs and small business owners amid uncertain domestic and international conditions," and added, "We hope to see many applications from companies that are burdened by interest costs and face difficulties in raising funds."
Meanwhile, the KakaoBank Daegu City Win-Win Guarantee allows all procedures from guarantee application to loan execution to be conducted non-face-to-face, enabling customers to conveniently access guarantees without visiting a branch.
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