Gwangju Bank to Provide 1 Trillion Won in Special Lunar New Year Funds for SMEs

Gwangju Bank will provide a total of 1 trillion won in the "2026 Lunar New Year Special Fund for Small and Medium Enterprises" until the 27th of next month to support local small and medium-sized enterprises and small business owners experiencing difficulties in fund management ahead of the Lunar New Year holiday. Photo by Gwangju Bank

On January 15, Gwangju Bank announced that it will provide a total of 1 trillion won in the "2026 Lunar New Year Special Fund for Small and Medium Enterprises" until the 27th of next month to support local small and medium-sized enterprises and small business owners who are experiencing difficulties in fund management ahead of the Lunar New Year holiday.

This special fund has been established to ease the liquidity burden on local businesses during a period when demand for working capital-such as payroll, raw material purchases, and payment for goods-intensifies before and after the holiday. The initiative is also intended to support the stable circulation of the regional economy. In particular, with business burdens increasing due to the recent economic slowdown and rising costs, Gwangju Bank, as the region's leading financial institution, plans to strengthen its timely financial support for companies facing funding challenges.

The total support consists of 500 billion won in new funds and 500 billion won in loan extensions, with a maximum limit of up to 5 billion won per company. Gwangju Bank will conduct swift reviews by closely reflecting each company's circumstances when funding needs arise, and will operate its financial support process to ensure that necessary funds are supplied in a timely manner.

For new funds, the bank will offer an interest rate discount of up to 1.1 percentage points per year compared to the calculated rate, providing tangible savings in financial costs. Through this, the bank aims to improve financing conditions for small and medium-sized enterprises and small business owners who are burdened by the high interest rate environment, thereby supporting stable business operations.

Woo Sungyi, Head of Credit Strategy at Gwangju Bank, stated, "We hope that this special fund for the Lunar New Year will provide real help to local small and medium-sized enterprises and small business owners during this period of concentrated funding demand," adding, "We will continue to listen to the voices of local industries and customers, and by closely monitoring economic conditions and capital flows, we will provide the financial support needed by local residents in a timely manner."

Meanwhile, Gwangju Bank has been allocating and providing special funds every year during the Lunar New Year and Chuseok holidays to support local small and medium-sized enterprises and small business owners who face difficulties in securing liquidity. Through these efforts, the bank helps prevent business activity in the region from contracting and actively practices local-focused management and mutually beneficial finance. Gwangju Bank plans to continue expanding its ongoing financial support and effective win-win programs as a financial partner that grows together with the local economic community.