Korea Credit Guarantee Fund, Shinhan Bank, and IBK to Provide KRW 300 Billion in Financing for SMEs

Ensuring Liquidity for SMEs
Preferential Guarantee Ratios and Reduced Guarantee Fees Offered

The Korea Credit Guarantee Fund announced that it has signed separate financial support agreements with Shinhan Bank and IBK (Industrial Bank of Korea) to support the financing of outstanding and start-up small and medium-sized enterprises (SMEs), and plans to provide a total of 300 billion KRW in guarantee agreements.

Under this agreement, approximately 200 billion KRW in guarantee agreements will be supplied using Shinhan Bank's contribution of 5.5 billion KRW, and approximately 100 billion KRW will be supplied using IBK's contribution of 4.25 billion KRW.

Through the "Financial Support Agreement for Real Economy Recovery and Strengthening Industrial Competitiveness" with Shinhan Bank, special contribution guarantee agreements and guarantee fee support agreements will be provided to companies in new growth engine industries, export and overseas expansion companies, promising start-ups, and venture companies. In accordance with the "Financial Support Agreement for Promising Corporations for Fair Finance and Innovative Growth," special contribution guarantee agreements will be provided to promising corporate entities that do not use guarantees from the Korea Credit Guarantee Fund or the Korea Technology Finance Corporation.

Exterior view of the Credit Guarantee Fund building. Credit Guarantee Fund

With IBK, a "Financial Support Agreement for Special Support of Operating Funds for Equipment Investment Start-ups" has been signed. Through IBK's "Special Support Program for Equipment Investment by Start-ups," special contribution guarantee agreements and guarantee fee support agreements will be supplied to companies within seven years of establishment that have set up their first business premises.

The Korea Credit Guarantee Fund will apply a 100% guarantee ratio for three years and will reduce the guarantee fee by 0.2 percentage points. For guarantee fee support agreements, Shinhan Bank will provide a 0.5 percentage point guarantee fee support for two years, and IBK will provide the same support for three years.

A representative from the Korea Credit Guarantee Fund stated, "Through this agreement, we will actively support outstanding and start-up SMEs so that they can secure funding in a timely manner and reduce their financial burden, even amid ongoing domestic and international uncertainties."