IBK and Daegu Urban Development Corporation Sign Agreement to Expand Co-Prosperity Growth Fund from 10 Billion to 12 Billion KRW

Loan Amounts for Small and Medium Construction Companies
Interest Rate Benefits of Up to 2.84% Applied

Daegu Urban Development Corporation (President Jung Myungsup) signed an agreement on June 10 with IBK Industrial Bank of Korea to expand the Co-Prosperity Growth Fund, aiming to revitalize the construction industry in Daegu.

The signing ceremony was attended by Jung Myungsup, President of Daegu Urban Development Corporation, Lee Daehong, Head of IBK Daegu Gyeongbuk East Regional Headquarters, and executives and employees from both organizations.

Jung Myungsup, President of Daegu Urban Development Corporation (right), and Lee Gihong, Head of IBK Daegu Gyeongbuk East Regional Headquarters, are holding the signed agreement and posing for a commemorative photo after signing a business cooperation agreement.

In June 2024, Daegu Urban Development Corporation and IBK Industrial Bank of Korea established a Co-Prosperity Growth Fund worth 10 billion KRW to support local small and medium-sized construction companies facing management difficulties. After operating the fund for one year, the two organizations decided to expand and reestablish the fund to provide further assistance to small and medium-sized construction companies in Daegu. Under this new agreement, the fund will be increased by 2 billion KRW to a total of 12 billion KRW, and the scope of support will be expanded to include small and medium-sized enterprises in the construction sector that are recommended by the corporation, startups, job-creating companies, and companies working to overcome regional decline.

Eligible companies can receive interest rate benefits of up to 2.84 percentage points per year, with a base reduction rate of 1.44 percentage points per year on loans of up to 500 million KRW, and an additional preferential rate of up to 1.40 percentage points per year depending on evaluation.

Jung Myungsup, President of Daegu Urban Development Corporation, stated, "We will work together with IBK to overcome the construction recession in Daegu," and added, "We will continue to contribute to the growth of local small and medium-sized construction companies through ongoing interest and support."